SaskEnergy Second Quarter Report - September 30, 2019

SaskEnergy Incorporated First Quarter Report Delivery and transportation revenue will continue to grow along with increasing operating costs. The outcome will be moderate rate pressure assuming regular rate increases. SaskEnergy will continue to focus on providing safe and reliable service to its customers and investing in safety and growth initiatives while actively seeking operating and capital deployment efficiencies through collaboration and technology initiatives. Weather will be a key factor affecting 2019-20 financial results. Forecasted results are based on normal weather as defined by the 30-year average. To the extent that weather is colder than normal, delivery revenue will increase, and to the extent that weather is warmer than normal, deliver revenue will be lower. Assuming weather is not extremely cold, transportation and storage revenue are typically not impacted by weather, as is the case with operating expenses. Commodity revenue and gas purchases are both affected by weather but typically offset each other. Accounting Changes In 2018-19, the Company adopted IFRS 15 Revenue from Contracts with Customers . Refer to the consolidated financial statements for the year ended March 31, 2019 for more information. (IFRS 9, Financial Instruments was early adopted in 2017-18).

March 31, 2011

In 2019-20, the Company adopted IFRS 16 Leases (Refer to the unaudited condensed interim financial statements for the three-months ended June 30, 2019 for more information).

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2019-20 SECOND QUARTER REPORT

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