SaskEnergy First Quarter Report - June 30, 2019

8. Lease liability (continued)

As at June 30, 2019, scheduled future minimum lease payments and the present value of the finance lease obligation are as follows for the next five fiscal years:

(millions)

2020

2021

2022

2023

2024

Future minimum lease payments

$

6

$

5

$

2

$

1

$

1

Present value of lease liability

$

5

$

5

$

2

$

1

$

1

9. Commitments

As at June 30, 2019, the Corporation had $141 million (2018 - $83 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, 2019, own-use natural gas derivative instruments had the following notional values and maturities for the next five fiscal years:

(millions)

2020

2021

2022

2023

2024

Total

Own-use physical natural gas contracts

Notional value

$

(54)

$

(74)

$

(73)

$

(71)

$

(71)

$

(343)

Notional value - estimated undiscounted cash outflow

10. Unrealized market value adjustments

For the Three Months Ended June 30,

2019

2018

(millions)

Change in fair value of natural gas derivative instruments

$

(10)

$

(6)

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

(2)

12

$

(12)

$

6

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.

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2019-20 FIRST QUARTER REPORT

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