Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 104

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 104
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 of benefits and factors that weighed positively in favor of the transactions contemplated by the merger agreement, including, but not limited to, the following (which are presented in no particular order and are not exhaustive):

| • |     | the combination of American Water and Essential would create a leading regulated U.S. water and wastewater 
 utility company serving more than 4.7 million water and wastewater customer connections across 17 states;  |

| • |     | the belief that American Water and Essential share similar strategic objectives and that the combined company 
 would continue to focus on safety and be well-positioned to improve safety through technological advances;    |

| • |     | the expectation that the merger would give rise to potential efficiencies, driven by, among other things, a more                                          
 efficient regulated platform with improved ability to serve customers and pass along economies of scale and operational efficiency benefits to customers; |

| • |     | the merger is expected to be accretive to American Water’s earnings per share in the first year following                                                                                 
 the completion of the merger, and the combined company expects to maintain American Water’s 7-9% earnings per share and dividend growth targets immediately following the effective time; |

| • |     | the belief that the merger will strengthen the combined company’s commitment to the communities it serves         
 by enabling the combined company to be able to better maintain an average customer water bill that is affordable; |

| • |     | American Water and Essential had a combined rate base of $33.5 billion as of December 31, 2024, and the      
 combined company would be expected to continue to maintain its overall rate base growth on a combined basis; |

| • |     | the merger is expected to improve the combined company’s access to capital and enhance the combined                                                                                                                                  
 company’s credit through scale, reduced cash flow seasonality, and diversification of regulatory exposure; moreover, the combined company would be expected to have greater access to high-quality capital allocation opportunities; |

| • |     | the exchange ratio is fixed and will not change based on fluctuations in the trading prices of American Water                                                                                                                                     
 common stock or Essential common stock, or changes in the business performance or financial results of American Water or Essential, which creates certainty as to the number of shares of American Water common stock to be issued in the merger; |

| • |     | recent and historical market prices, volatility, and trading information for American Water common stock and 
 Essential common stock;                                                                                      |

| • |     | the expectation that the use