SaskEnergy Third Quarter Report - December 31, 2019

10. Unrealized market value adjustments (continued)

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.

11. Natural gas sales and purchases

2019 2018 For the Three Months Ended December 31,

Asset

Asset

(millions)

Commodity Optimization Total

Commodity Optimization Total

Natural gas sales Natural gas sales to commodity customers

$

63

$

-

$

63

$

70

$

-

$

70

Realized on natural gas derivative instruments

-

39

39

-

54

54

Change in fair value of natural gas derivative instruments

-

(1)

(1)

-

6

6

63

38

101

70

60

130

Natural gas purchases Realized on natural gas derivative instruments

(52)

(40)

(92)

(53)

(46)

(99)

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

(2)

(5)

(7)

(5)

11

6

-

3

3

-

(2)

(2)

(54)

(42)

(96)

(58)

(37)

(95)

$

9

$

(4)

$

5

$

12

$

23

$

35

2019 2018 For the Nine Months Ended December 31,

Asset

Asset

(millions)

Commodity Optimization Total

Commodity Optimization Total

Natural gas sales Natural gas sales to commodity customers

$

93

$

-

$

93

$

129

$

-

$

129

Realized on natural gas derivative instruments

-

105

105

-

170

170

Change in fair value of natural gas derivative instruments

-

2

2

-

-

-

93

107

200

129

170

299

Natural gas purchases Realized on natural gas derivative instruments

(79)

(99)

(178)

(100)

(161)

(261)

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

(2)

(35)

(37)

20

(7)

13

-

3

3

-

14

14

(81)

(131)

(212)

(80)

(154)

(234)

$

12

$

(24)

$

(12)

$

49

$

16

$

65

27

2019-20 THIRD QUARTER REPORT

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