Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 154

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 154
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 |     | $               | 36,573 |     |            | 13.7x |     |            | 12.1x |
| Southwest                            |     | $               | 10,244 |     |            | 10.2x |     |            | 8.5x  |
| ONE Gas                              |     | $               |  8,224 |     |            | 10.0x |     |            | 9.4x  |
| Northwest                            |     | $               |  4,226 |     |            | 8.9x  |     |            | 8.5x  |

Essential Based on its professional judgment and experience, Moelis performed its selected publicly traded companies analysis of Essential on a sum-of-the-partsbasis to reflect the different business and financial characteristics of the Water Segment and Gas Segment as well as the Parent Segment of Essential. As such, Moelis performed separate analyses of each respective segment of Essential and summed the results of such analyses to determine the implied per share value range for the Essential common stock, as further discussed below. In determining the selected reference ranges to apply to the Water Segment’s estimated financial metrics, Moelis noted that the selected reference ranges were informed by the low and high ends of the Selected Publicly Traded Water Utility Companies, given the relative comparability with regards to regulatory jurisdictions and growth profiles. In determining the selected reference ranges to apply to the Gas Segment’s estimated financial metrics, Moelis noted (i) that the selected reference ranges were informed by the low and high ends of the Selected Publicly Traded Gas Utility Companies, given the relative comparability with regards to regulatory jurisdictions and growth profiles and (ii) that Northwest was considered, but not utilized, to inform the reference ranges due to its materially lower quality regulatory, growth and financial characteristics compared to the other Selected Publicly Traded Gas Utility Companies. In determining the selected reference ranges to apply to the Parent Segment’s estimated financial metrics, Moelis calculated the blended EBITDA trading multiples informed by the EBITDA contributions of the Water Segment and the Gas Segment based on their respective contributions to the EBITDA of Essential. Based on the foregoing analysis and its professional judgment and experience, Moelis selected a (i) reference range of 10.5x to 14.5x for the Water Segment’s TEV / 2026E EBITDA multiples and reference range of 9.5x