SaskEnergy Third Quarter Report - December 31, 2025

Notes to the Consolidated Financial Statements (unaudited)

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 December 31, 2025

As at March 31, 2025

(millions)

Total future minimum lease payments Less: Future finance charges on leases

$

18

$

14

(1)

(1)

Present value of lease liability

17

13

Less: Current portion of lease liability

(7)

(5)

$

10

$

8

As at December 31, 2025

As at March 31, 2025

(millions)

Lease liability, beginning of period

$

13

$

13

Net additions

8

5

Principal repayment of lease liability

(4)

(5)

Lease liability, end of period

$

17

$

13

The weighted average discount rate applied to computer leases and vehicle leases is 4.0 per cent based on the rates implicit in the agreements. The weighted average discount rate applied to building leases is 4.0 per cent based on the Corporation’s incremental borrowing rate. The following table summarizes, as at December 31, 2025, the future minimum lease payments and the present value of the lease liability by fiscal year of maturity. Amounts for fiscal 2026 represent the remaining three months of the fiscal year ending March 31, 2026, while amounts for 2027 and subsequent years represent full twelve-month fiscal periods:

(millions)

2026

2027

2028

2029

2030 Thereafter

Future minimum lease payments Present value of lease liability

$ $

2 1

$ $

6 6

$ $

4 4

$ $

3 3

$ $

2 2

$ $

1 1

8. Long-Term Debt

As at December 31, 2025

As at March 31, 2025

(millions)

Balance, beginning of period

$

1,862

$

1,767

Proceeds Repayment

149

195

(75)

(100)

Balance, end of period

1,936

1,862

Less: Current portion of long-term debt

-

(75)

$

1,936

$

1,787

24

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