Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 128

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 128
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:------------------|:----|:--------------------------|:----|:------------------------|
| September 5, 2023 |     | Enbridge                  |     | Dominion LDCs           |
| October 30, 2023  |     | Bernhard Capital Partners |     | Entergy LDC             |
| February 20, 2024 |     | Bernhard Capital Partners |     | CenterPoint LDCs        |
| August 5, 2024    |     | Bernhard Capital Partners |     | Emera LDC               |
| November 18, 2024 |     | NWN                       |     | SiEnergy                |
| July 29, 2025     |     | Spire                     |     | Piedmont TN Natural Gas |
| October 21, 2025  |     | NFG                       |     | CenterPoint OH          |

BofA Securities reviewed the enterprise values implied for each target company based on the aggregate consideration payable in the selected transaction, as a multiple of each respective target company’s rate base as of the fiscal year preceding the year in which the applicable transaction was announced, which is referred to in this section as EV / Prior Year Rate Base multiples. Financial data relating to each of the selected transactions and target companies was based on publicly available information. The overall low to high EV / Prior Year Rate Base multiples observed for the target companies in the selected transactions in the water utility industry were 1.7x to 2.3x. The overall low to high EV / Prior Year Rate Base multiples observed for the target companies in the selected transactions in the gas local distribution industry were 1.4x to 2.0x. 84

Based on BofA Securities’ review of the EV / Prior Year Rate Base multiples for the selected transactions and on its professional judgment and experience, BofA Securities calculated a range of implied enterprise values reference ranges (i) for Essential’s water utility segment by applying an EV / Prior Year Rate Base multiple reference range of 1.7x to 2.3x to Essential’s rate base as of June 30, 2025 for the water utility segment and (ii) for Essential’s gas local distribution segment by applying a EV / Prior Year Rate Base multiple reference range of 1.4x to 2.0x to Essential’s rate base as of June 30, 2025 for the gas local distribution segment, each as reflected in the Essential forecasts. Bof