SaskEnergy First Quarter Report - June 30, 2020

6. Long-term debt

During the quarter, the Corporation issued $150 million in long-term debt in two increments. The first $100 million was issued at a premium of $11 million with an interest rate of 3.1 per cent and the second $50 million was issued at no premium with an interest rate of 2.3 per cent.

7. Lease liability

Leases are recognized as right-of-use assets and corresponding liabilities at the date at which a leased asset is available for use. Payments for short-term leases and leases of low-value assets are expensed on a straight-line basis and excluded from the lease liability.

As at

As at

June 30,

March 31,

(millions)

2020

2020

Lease liabilities, beginning of period

$

13

$

8 7 3

Transitional provision

-

Net additions

1

Principal repayment of lease liability

(1)

(5)

Lease liabilities, end of period

$

13

$

13

8. Commitments

As at June 30, 2020, the Corporation had $97 million (2019 - $141 million) of outstanding contractual commitments for the procurement of goods and services in the future.

During the period, the Corporation entered into commodity contracts for the physical purchase of natural gas that qualify as own-use contracts. As at June 30, 2020, own-use natural gas derivative instruments had the following notional values and maturities for the next five fiscal years:

(millions)

2021

2022

2023

2024

2025

Total

Own-use physical natural gas contracts

Notional value

$

(57)

$

(73)

$

(71)

$

(70)

$

(86)

$

(357)

Notional value - estimated undiscounted cash outflow

2020-21 First Quarter Report

25

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