SaskEnergy First Quarter Report - June 30, 2020

9. Unrealized market value adjustments

For the Three Months Ended June 30,

2020

2019

(millions)

Change in fair value of natural gas derivative instruments

$

8 4

$

(10)

Change in revaluation of natural gas in storage to net realizable value

(2)

$

12

$

(12)

Unrealized market value adjustments represent the net income impact of measuring certain financial and derivative instruments at fair value subsequent to initial recognition (Note 5) and measuring natural gas in storage at the lower of weighted average cost and net realizable value (Note 4). These adjustments represent the change in the carrying amount of the related item during the period and are dependent on the market prices and expected delivery dates at the end of the reporting period.

10. Natural gas sales and purchases

For the Three Months Ended June 30,

2020

2019

Asset

Asset

(millions)

Commodity Optimization Total

Commodity Optimization Total

Natural gas sales Natural gas sales to commodity customers

$

25

$

25

$

20

$

-

$

20

Realized on natural gas derivative instruments

-

37

37

-

35

35

Change in fair value of natural gas derivative instruments

-

(2)

(2)

-

5

5

25

35

60

20

40

60

Natural gas purchases Realized on natural gas derivative instruments

(24)

(41)

(65)

(18)

(31)

(49)

Change in fair value of natural gas derivative instruments Change in revaluation of natural gas in storage to net realizable value

5

5

10

(1)

(14)

(15)

-

4

4

-

(2)

(2)

(19)

(32)

(51)

(19)

(47)

(66)

$

6

$

3

$

9

$

1

$

(7)

$

(6)

2020-21 First Quarter Report

26

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