2025-26 SaskEnergy Annual Report

2014 SaskEnergy Annual Report

Annual Report 2025-26

Community Aspiration Environmental sustainability and economic prosperity for future generations of Saskatchewan. Vision Providing critical energy to support a prosperous Saskatchewan. Mission SaskEnergy delivers natural gas and energy solutions responsibly to the residents, businesses, and industries of Saskatchewan.

Values

Safety We commit to our personal safety, the safety of our team, and the public.

Integrity We are accountable for our decisions, our actions, and the results.

Stewardship We align resources towards the greatest and most responsible impact.

Teamwork We collaborate, respect, and trust one another. We are a representative workforce.

Contents

SaskEnergy is committed to delivering safe and reliable natural gas for the residents, businesses and industries of Saskatchewan. As the energy provider for the province, we strive to offer competitive rates and customer service excellence. Our success is driven by our values as we continue to deliver on our vision to provide critical energy to support a prosperous Saskatchewan.

5 Our Business 6 Corporate Profile 7 Letter of Transmittal 8 Chair’s Message 9 President’s Message 12 Looking Back at 2025-26 15 Financial and Operating Highlights 22 Management’s Discussion and Analysis

45 Consolidated Financial Statements 54 Notes to the Consolidated Financial Statements 82 Corporate Governance 84 Supplementary Information 86 Glossary of Key Success Measures 90 Glossary of Natural Gas Measurements 91 Saskatchewan Natural Gas Transmission Lines

Championing Saskatchewan Volunteers and Strengthening Communities

With Saskatchewan having one of the highest volunteerism rates in Canada, SaskEnergy is proud to celebrate 25 years as the province’s Champion of Volunteers. Since 2000, SaskEnergy has provided more than $2.7 million in sponsorship of volunteer-led programs and events, supporting over 840,000 volunteers across nearly 1,500 initiatives. “From the Grey Cup, Special Olympics and Saskatchewan Winter Games to community cleanups and town festivals, SaskEnergy stands behind the countless people that generously give their time and energy to make these events possible. Volunteerism shows that everyone can make a difference, contributing to an engaged, vibrant province and stronger communities.” — Allix Schweitzer , Supervisor of Community Engagement, SaskEnergy

Our Business

Our Business SaskEnergy’s natural gas system has played a critical role in meeting the energy needs of Saskatchewan’s residents, businesses, farms and industries for more than 70 years. We are committed to providing safe, reliable and affordable service to meet the evolving energy needs and growing demand for natural gas in our province. As a provincial Crown corporation, SaskEnergy is proud to operate a system that is more than 99.99 per cent reliable while maintaining delivery rates among the lowest in Canada. We recognize our role in supporting the industries and residents of Saskatchewan as we serve more than 418,000 households and businesses. Our more than 1,200 dedicated employees throughout the province are committed to providing ease of service and the best possible experience for our customers, while safely operating and maintaining our system of 15,238 kilometres of transmission lines and 72,906 kilometres of distribution lines. We are committed to strengthening the economic prosperity of Saskatchewan — investing in the rural, urban and Indigenous communities we serve, striving to provide a safe and engaging workplace, reducing our impact on the environment, and building long-term corporate sustainability.

Delivering Value to our Customers SaskEnergy exists to serve the people of Saskatchewan. Our customers include:

Residential • Urban • Rural

Commercial • Retail businesses • Restaurants • Small hospitals • Curling rinks • Hotels • Warehouse buildings

Industrial • Potash mines • Power generation • Value-added agricultural sector • Enhanced oil recovery • Manufacturing • Large hospitals • Universities

As we work toward our vision of providing critical energy to support a prosperous Saskatchewan, we are guided by our two strategic imperatives.

Affordability • Lowest cost energy source in Saskatchewan • Stable and competitive rates • Top quartile of the lowest delivery rates across the country

Financial Sustainability • Achieve targeted regulated returns on equity and manage debt responsibly

Corporate Profile

Crown Investments Corporation of Saskatchewan

SaskEnergy Incorporated

Many Islands Pipe Lines (Canada) Limited

TransGas Limited

Bayhurst Gas Limited

Transmission and Storage

Natural Gas in Storage

Interprovincial Transmission

SaskEnergy Incorporated (SaskEnergy or the Corporation) is a Saskatchewan Crown corporation governed by The SaskEnergy Act . It is a designated subsidiary of Crown Investments Corporation of Saskatchewan (CIC). CIC is also a Crown corporation and effectively operates as the Province’s holding company for commercial Crown corporations (such as SaskPower, SaskTel and SGI) and various commercial investments. SaskEnergy’s primary business is the sale and delivery of natural gas through its distribution utility. SaskEnergy owns and operates the distribution utility, which includes the legislative franchise to distribute natural gas within the province of Saskatchewan. The provincial cabinet regulates SaskEnergy’s delivery service and commodity rates. All rate changes are subject to review by the Saskatchewan Rate Review Panel, an independent body, prior to receiving provincial cabinet approval. SaskEnergy’s corporate structure includes three wholly owned subsidiaries, as follows: TransGas Limited (TransGas) owns and operates the transmission utility and has the exclusive legislative franchise to transport natural gas within the province of Saskatchewan. It also owns and operates a natural gas storage business, which is integrated with the transmission gas line system. Bayhurst Gas Limited (Bayhurst) owns a natural gas storage facility in the northwestern area of Saskatchewan. Many Islands Pipe Lines (Canada) Limited (MIPL) is a federally regulated transmission company that owns five transmission gas line interconnections to Alberta, two into the United States, one into Manitoba, and one interconnect between the MIPL system and the federally regulated Foothills Saskatchewan system. MIPL is regulated by the Canada Energy Regulator.

Letter of Transmittal

Regina, Saskatchewan June 2026

Her Honour the Honourable Bernadette McIntyre, S.O.M. Lieutenant Governor of Saskatchewan Province of Saskatchewan

May it please Your Honour: I have the honour to submit herewith the annual report of SaskEnergy Incorporated for the fiscal year ending March 31, 2026, in accordance with The SaskEnergy Act . The Financial Statements included in this annual report are in the form approved by Crown Investments Corporation of Saskatchewan as required by The Financial Administration Act , 1993 and have been reported on by the auditors.

Respectfully submitted,

Honourable Jeremy Harrison Minister Responsible for SaskEnergy Incorporated

Chair’s Message

On behalf of the SaskEnergy Board of Directors, I am pleased to join the Minister Responsible for SaskEnergy, the Honourable Jeremy Harrison, in presenting SaskEnergy’s 2025-26 Annual Report.

At its core, SaskEnergy delivers safe and reliable energy to the people and industries of Saskatchewan. Beyond providing an essential service, access to affordable and secure energy supports economic growth and contributes to the quality of life we enjoy in this province. In 2025-26, SaskEnergy once again demonstrated thoughtful fiscal management and strategic planning and execution, producing strong results in key focus areas that enable the Corporation to remain resilient and responsive to the benefit of its customers — safety, affordability, reliability, ease of access and customer service excellence. These focus areas remain the foundation of SaskEnergy’s business strategy and drive customer value. The Board will continue to ensure that the Corporation’s efforts align with the Government of Saskatchewan’s Crown Sector Strategic Priorities, the Saskatchewan Growth Plan, and the best interests of the people of Saskatchewan. I would like to welcome Shannon Andrews, Cory Harkness, Tom Lukiwski and Sheldon Wuttunee to the SaskEnergy Board of Directors, and share my appreciation for the contributions of Cherise Arnesen, Curt Chickoski and Linda Moulin, whose terms ended in 2025-26. I value the time and efforts of each Director, and the integral role they play in the effective oversight and transparent stewardship of SaskEnergy. Thank you to SaskEnergy’s teams across the province for all your efforts during 2025-26. From frontline employees to Executive members, your dedication and commitment to operating safely and responsibly ensure SaskEnergy can continue to serve the residents and businesses of Saskatchewan with reliability and care. On behalf of the Board, we are proud of the work you do and remain confident in SaskEnergy’s continued role in supporting Saskatchewan’s communities and economy.

Susan Barber, K.C. Chair, SaskEnergy Board of Directors

President’s Message

Our vision to provide critical energy to support a prosperous Saskatchewan recognizes the vital role SaskEnergy plays in supporting the quality of life and economic growth we continue to enjoy in our province. Each year, we plan and develop strategies to maintain a strong foundation in the delivery of safe, affordable and reliable energy to the province, while also positioning SaskEnergy for strategic, responsible growth to meet the evolving needs of our customers. Throughout the past year, these strategies served us well, contributing to strong results while maintaining delivery rates that remained among the lowest in Canada. SaskEnergy remains dedicated to supporting and investing in the rural, urban and Indigenous

communities we serve — not only through our natural gas service, but through community involvement initiatives, programs and rebates to help customers reduce their energy use and bills, and a focus on local procurement. As a Crown corporation, we’re privileged to operate in a province with one of the highest rates of volunteerism in Canada and, in 2025-26, we proudly celebrated 25 years as Saskatchewan’s Champion of Volunteers. Through this program, SaskEnergy has provided more than $2.7 million in sponsorship of volunteer-led programs and events, supporting over 840,000 volunteers across nearly 1,500 initiatives. While our province’s industries and communities continue to grow, so too does the demand for energy in Saskatchewan. With the number of residences and businesses SaskEnergy serves now surpassing 418,000, and our large industrial customers looking to expand their operations in Saskatchewan, continued investment in our natural gas system is critical. As we invest in our system, we are also provided with the opportunity to contribute to Saskatchewan’s robust economy. In 2025-26, our local procurement reached 73 per cent, with more than $340 million in goods and services purchased from Saskatchewan vendors and nearly $45 million in contracts awarded to businesses with Indigenous ownership or workforce representation. Alongside this growth, we know people and businesses across the province are feeling the pressures of fast-paced economic changes. With costs continuing to rise, for SaskEnergy and for our customers, we remain focused on strengthening our financial sustainability and maintaining competitive rates for our customers. In 2025-26, we made further progress on our commitment to reduce emissions from operations by 35 per cent by 2030, reaching 27.1 per cent reduction from 2019 levels. In addition, we provided $7.2 million in rebates to residential and commercial customers through our energy efficiency programs. These programs support customers in switching to high-efficiency heating equipment, which allows them to reduce energy use, lower their energy bills and decrease their end-use emissions. In 2025-26, we introduced the Heating Affordability Program to further support customers who may face financial barriers in accessing high-efficiency equipment, at a time when affordability is top of mind. As we reflect on another successful year, it’s clear that SaskEnergy’s strongest asset remains our people. Our employees consistently embody our corporate values of safety, integrity, stewardship and teamwork, and I thank them for their dedication to the people of Saskatchewan. I would also like to acknowledge our Board of Directors for their support and leadership in 2025-26.

Mark Guillet, K.C. President and Chief Executive Officer

Delivering Safe and Reliable Energy Year-Round

SaskEnergy invests, on average, more than $100 million each year in the maintenance and integrity of our system, allowing us to deliver the advantages of natural gas and our service to our customers across the province. Our employees work year-round on the design, construction and integrity of Saskatchewan’s natural gas system. Included in this work is maintenance of the 25 compressor stations throughout our transmission system. Strategically located to optimize the operation of our system, these stations help keep the natural gas flowing reliably and efficiently to our customers. Thanks to planned integrity, renewal and expansion projects throughout our system’s more than 70-year history, these assets often have an indefinite life cycle, helping to reduce capital costs and maintain a system that meets growing customer demand and evolving industry standards — supporting SaskEnergy’s vision of providing critical energy to support a prosperous Saskatchewan.

Above – Success Compressor Station today. Below – Construction of the Success Compressor Station started in 1958 and it was put into service in 1960. The station celebrated its 65th year in 2025.

A critical component of our natural gas system, the Unity Compressor Station first went into service in 1960, and was expanded in 1969, with the addition of a new compressor unit (below). In 2025-26, site preparation began for a revitalization project at the Unity compressor site (right). The station, which also celebrated its 65th year of operation in 2025, will have four new, high-efficiency compressor units installed as part of the project.

Photos from the SaskEnergy archives.

Looking Back at 2025-26

Investing in our communities supported 1,043 programs and events in 393 communities across Saskatchewan

27.1% reduction in emissions from operations from 2019 making strong progress on our roadmap to reduce emissions by 35% by 2030

Canadian Gas Association Community Safety Champion Award recipient for the First Nations safety signs project. In 2025-26, more than 100 of the newly designed signs were installed on over 50 Saskatchewan First Nations to promote public awareness of natural gas safety.

14,500 tonnes carbon dioxide equivalent (CO 2 e) year-over-year reductions in greenhouse gas (GHG) emissions from operations

22,700 tonnes CO 2 e reduction in GHG emissions from residential and commercial customers through natural gas conservation programs

3,881 new distribution customers added to our system

89% and 92% customer satisfaction rating for SaskEnergy and TransGas, respectively

A Top Employer for 2026 fourth consecutive year being recognized as one of Canada’s Top 100 Employers and one of Saskatchewan’s Top Employers

Supporting customer growth and economic development Completed a system expansion and new connection for Louis Dreyfus Corporation’s expansion at its existing canola processing facility near Yorkton. The new plant will be used for pea protein isolate

• 325 distribution customer projects • Investment in transmission infrastructure and gas line expansions to improve system reliability and capacity • Execution of projects to support new and expanding industrial customer operations and growing communities

production and brings large-scale economic benefits to the region and supports producers across the province.

Looking Back at 2025-26

Affordable energy average total natural gas bills for residential customers remain competitive, with delivery rates among the lowest in Canada

$135 million dedicated to system reliability and integrity initiatives

$5.3 million in continued cost savings achieved through procurement practice improvements and efficiencies, as well as collaboration with other Crown corporations and government agencies

Safe Digging Excellence Award launched to recognize contractors who reduce the risk of damage to underground infrastructure by following safe digging practices

$342.9 million in goods and services purchased from vendors in Saskatchewan, representing 73 per cent of all corporate purchase orders

$7.2 million in support to Saskatchewan residential and commercial customers who made energy-efficiency improvements to their homes and businesses, including rebates for the purchase of new high-efficiency natural gas appliances

$44.6 million in contracts awarded to businesses with Indigenous ownership or that provide Indigenous labour

$100,000 in Share the Warmth grants for grassroots initiatives that provide warm shelter, food, clothing or mental health services for vulnerable individuals during the coldest months of the year. In 2025-26, Share the Warmth provided $100,000 to support 115 programs in 104 communities, impacting more than 28,300 people in communities and First Nations across Saskatchewan. Since 2013, Share the Warmth has provided $630,000 to more than 650 projects province-wide. In addition to the grants, SaskEnergy also hosted Share the Warmth Days in collaboration with grant recipients to recognize the work of charitable groups in Saskatchewan communities. In 2025-26, the second year of hosting these events, Share the Warmth Days were held in Regina, North Battleford, Moose Jaw and Tisdale.

SaskEnergy’s Heating Affordability Program (HAP) is available to help income-qualifying homeowners replace their furnace at no cost. Upgrading to a high-efficiency furnace improves the safety and efficiency of their heating equipment, helping homeowners save up to $650 annually on natural gas and electricity costs. In the program’s first year, more than $230,000 was invested into the installation of 32 high- efficiency furnaces. Supporting Our Customers in Lowering Their Energy Costs

I was so pleased to have been selected for the program. The process, including installation of the furnace, was smooth and efficient. Participating in the program has made us more aware of being energy efficient, and the new high- efficiency equipment brings economic benefits that are very appreciated. Reducing energy costs is important for all families, especially low-income households. — HAP participant Meacham, SK

The Heating Affordability Program is so beneficial for low-income customers that have been relying on old, inefficient, unreliable furnaces. Every winter I was worried my old furnace would quit and I would have to figure out how to replace it. Having a new high-efficiency furnace gives me peace of mind, while helping me use less natural gas and save money on my energy bills. I’m so grateful I was chosen for HAP. The process was easy and seamless, and I love my new furnace! — HAP participant Prince Albert, SK

As a single parent with a 40-year-old furnace, I was so excited and grateful to participate in HAP. Programs like this are extremely important for families like mine on a tight budget and provide an important service for those of us in need of upgrading vital equipment in our homes! — HAP participant Yorkton, SK

Financial and Operating Highlights

CONSOLIDATED FINANCIAL INFORMATION ($ millions)

2025-26

2024-25

2023-24

324 261

Delivery

324 249

304 236

Transportation and storage Realized commodity margin

45 34 64

45 20 40

42 12 28

Realized asset optimization margin Customer capital contributions

Total revenue and margins

728 133 246 146

678 126 226 141

622 119 206 140

Employee benefits

Operating and maintenance Depreciation and amortization

Saskatchewan taxes

Loss (recovery) on trade and other receivables

(1)

Net finance expenses

Other net losses Total expenses

632

596

567

Income before unrealized market value adjustments

(12)

Market value adjustments CONSOLIDATED NET INCOME

(34)

84 34

90 31

21 21

Dividends declared

4,097

Total assets

3,834

3,633

348

Cash provided by operating activities Cash used in investing activities

410

345

(439)

(355)

(269)

Cash provided by (used in) financing activities Property, plant and equipment additions

(73)

(62)

420

326

246

2,075 60/40 7.3%

Total net debt

1,863 59/41 6.4%

1,826 59/41 4.4%

Debt/Equity ratio

Rate of return on equity

OPERATING STATISTICS Distribution energy (petajoules) Residential/Farm

37 33

35 31

Commercial

203 273

Industrial

197 267

192 258

TOTAL

Transmission energy (petajoules) Domestic

399

394

389

Export

TOTAL

411

399

400

Number of customers Distribution

418,380

414,499

411,077

134

Transmission

139

135

Financial and Operating Highlights

Operating Summary – Distribution

2025-26 2024-25

2023-24

6,923 2,632 5,314 4.0%

Sales in million cubic metres 1

6,755 2,557 5,571 (0.8%)

6,513 2,565 5,103 8.7%

Residential annual average usage (cubic metres)

Degree days 2

Percentage warmer (colder) than normal NATURAL GAS LINE (kilometres) SaskEnergy Incorporated

72,907

72,662

72,232

1 Retail and industrial 2 A unit measuring the extent to which the temperature falls below 18° Celsius. Normal weather for the 12 months ended March 31, 2026 would have been 5,532 degree days.

Operating Summary – Transmission

2025-26 2024-25

2023-24

1.72

Peak day natural gas flows (petajoules)

1.64

1.70

Jan. 26

Date of peak day flow Storage cavern sites Storage caverns Storage field sites 1

Feb. 18

Jan. 12

5 2

18 2

NATURAL GAS LINE (kilometres) TransGas Limited Transmission

14,613

14,550 3

14,676

167 458

Gathering

167 473

Many Islands Pipe Lines (Canada) Limited

Bayhurst Gas Limited

0 4

TOTAL

15,238

15,190 3,4

15,338

SYSTEM COMPRESSION TransGas Limited stations

Many Islands Pipe Lines (Canada) Limited stations

Mobile compressor units

COMPRESSION HORSEPOWER TransGas Limited

75,788 11,760 87,548

73,068 11,760 84,828

Many Islands Pipe Lines (Canada) Limited

TOTAL

1 Includes Bayhurst Gas Limited 2 Reduction due to the deactivation of Regina Storage Cavern site. 3 Reduction due to planned abandonment of transmission lines. 4 Reduction due to planned abandonment of gathering lines for Totnes and Pierceland storage fields.

Financial and Operating Highlights

Quarterly Financial and Operating Highlights 2025-26 CONSOLIDATED FINANCIAL INFORMATION ($ millions)

March 31, 2026

116 $

324 261

Delivery

61 $

47 $

100 $

Transportation and storage Net commodity sales realized Realized asset optimization margin Customer capital contributions

66 18 15 10

65 18 12 18

45 34 64

5 6

4 1

Total revenue and margins

162

128

209

229

728 133 246 146

Employee benefits

33 57 35

29 59 36

33 58 38

38 72 37

Operating and maintenance Depreciation and amortization

Saskatchewan taxes

4 1

Loss on trade and other receivables

Net finance expenses

Other net losses Total expenses

151

153

155

173

632

CONSOLIDATED INCOME (LOSS) before unrealized market value adjustments

$ $

11 $

(25) $

54 $

56 $ 16 $

96 34

Dividends declared

4 $

8 $

6 $

348

Cash provided by operating activities Cash used in investing activities

207

(439)

(67)

(118)

(115)

(139) (109)

Cash provided by (used in) financing activities Property, plant and equipment additions

16 63

103 108

420

115

134

OPERATING STATISTICS Distribution energy (petajoules) Residential/Farm

37 33

4 5

2 2

15 11 53 79

16 15 56 87

Commercial

203 273

Industrial

45 54

49 53

TOTAL

3% warmer 4% warmer

Weather (compared to last 30 years) Transmission energy (petajoules) Domestic

11% warmer 34% warmer Near normal

399

110

121

Export

TOTAL

112

124

411

Financial and Operating Highlights

Quarterly Financial and Operating Highlights 2024-25 CONSOLIDATED FINANCIAL INFORMATION ($ millions)

March 31, 2025

119 $

324 249

Delivery

61 $

48 $

96 $

Transportation and storage Net commodity sales realized Realized asset optimization margin Customer capital contributions

64 12

62 24 11 13

45 20 40

6 1 3

3 2

Total revenue and margins

133

126

190

229

678 126 226 141

Employee benefits

32 49 34

28 53 35

30 55 35

36 69 37

Operating and maintenance Depreciation and amortization

Saskatchewan taxes

4 2

(1)

(Recovery) loss on trade and other receivables

(2)

(1)

Net finance expenses

Other net losses Total expenses

139

141

145

171

596

CONSOLIDATED INCOME (LOSS) before unrealized market value adjustments

$ $

(6) $ 4 $

(15) $

45 $

58 $ 16 $

82 31

Dividends declared

4 $

7 $

410

Cash provided by operating activities Cash used in investing activities

184

(355)

(36) (61)

(73)

(106)

(140)

(73)

Cash (used in) provided by financing activities Property, plant and equipment additions

13 71

18 98

(43)

326

125

OPERATING STATISTICS Distribution energy (petajoules) Residential/Farm

37 33

5 5

2 2

13 11 52 76

17 15 55 87

Commercial

197 267

Industrial

45 55

45 49

TOTAL

1% colder

Weather (compared to last 30 years) Transmission energy (petajoules) Domestic

4% warmer 50% warmer 1% warmer

9% colder

394

110

122

Export

TOTAL

111

125

399

Financial and Operating Highlights

Quarterly Year-Over-Year Analysis

Second Quarter (three months ended September 30)

The Corporation recorded a net loss of $25 million in the second quarter of 2025-26, compared to a net loss of $15 million in the same period in the prior year. The $10 million unfavourable result is primarily due to continued increase in operating and maintenance expenses, as highlighted in the first quarter variance analysis. Technology-related contracting costs and business support software costs continue to account for the bulk of the variance in the operating and maintenance category. The Corporation also realized higher other losses due to the write-off and cancellation of a system enhancement project. Further, recoveries on bad debt were realized in the prior year and no such recoveries were realized in the current year. Favourable transportation and storage revenue variances continued in the second quarter, having an offsetting impact on the largely unfavourable overall quarterly variance. Delivery revenue was relatively flat quarter over quarter.

Operating results typically fluctuate from quarter to quarter due to variations in economic conditions and seasonal factors. Consequently, one quarter’s results may not accurately predict future performance. Natural gas consumption exhibits distinct seasonal patterns, as customers predominantly use natural gas for heating during the cold winter months, particularly in the third and fourth quarters. The quarterly year-over-year analysis, excluding market value adjustments, is as follows:

First Quarter (three months ended June 30)

The Corporation reported net income of $11 million in the first quarter of 2025-26, compared to a net loss of $6 million in the same period in 2024-25, a $17 million year-over-year improvement. Results primarily benefited from higher customer capital contributions, which increased by $22 million year over year, as a result of higher transmission customer connection activity. Stronger realized asset optimization margins and higher transportation and storage revenue also had a favourable impact. Asset optimization margins increased by $5 million, reflecting an increase of $0.16 per gigajoule (GJ). Volumes were also higher due to increased market opportunities, largely driven by pipeline maintenance activities in Alberta. As for transportation and storage revenue, the $3 million increase is attributable to an average rate increase across all services. These favourable results were partially offset by higher operating and maintenance expenses, specifically contracts and consulting and third-party transportation. Contract and consulting costs increased due to higher technology-related contracting costs and the implementation of new business support software. Third-party transportation costs also increased, as new customer connections drove higher transportation demand, compounded by rate increases and the need for additional third-party transportation service contracts. Weather during the quarter was 11 per cent warmer than normal, compared to four per cent warmer in the first quarter of the prior year. This reduced volumes and resulted in delivery revenue remaining relatively flat year over year, despite continued customer growth.

Third Quarter (three months ended December 31)

The Corporation generated net income of $54 million in the third quarter of 2025-26, compared to $45 million in the third quarter of 2024-25. Weather in the quarter was near normal, while the prior comparable period was one per cent warmer. In contrast, December 2025 was 12 per cent colder than December 2024, supporting higher customer usage and increasing delivery revenue to $100 million from $96 million in the third quarter of the prior year. The colder weather in December also had a favourable impact on the net commodity margin variance. The commodity margin variance was also impacted by favourable average sales revenue per GJ, as low-priced excess gas, which was primarily sold in the third quarter of 2024-25, drove down the average in the prior year. Further, the asset optimization margin was significantly higher — $15 million versus $6 million — reflecting stronger spreads and effective use of transportation and storage capacity. Additionally, transportation and storage revenue continued to have a favourable impact. These gains more than offset higher operating and maintenance costs, which exhibited the same trends as in the first two quarters of the year.

Financial and Operating Highlights

Fourth Quarter (three months ended March 31)

Net income for the fourth quarter of fiscal 2025-26 was $56 million, a decrease of $2 million compared to $58 million in the fourth quarter of fiscal 2024-25. Weather was the primary driver of the unfavourable variance, as temperatures were 12 per cent warmer for the three months ended March 31, 2026, compared to the same period in the prior fiscal year. The warmer weather resulted in lower customer demand, contributing to unfavourable variances in delivery revenue and net commodity sales of $3 million and $6 million, respectively. In addition, cost pressures observed in the first three quarters of the fiscal year continued into the fourth quarter. Higher operating and maintenance expenses, along with increased employee benefit costs, contributed to a further unfavourable variance of $5 million. These unfavourable impacts were partially offset by favourable variances in customer capital contributions and transportation and storage revenue. Net income also benefited from no impairment losses in the fourth quarter of fiscal 2025-26, compared with impairment losses recorded in the same quarter of the prior fiscal year.

An Expansive System Designed for a Strong Saskatchewan

SaskEnergy operates the largest rural distribution network in Canada, with the fewest customers per kilometre of gas line, while maintaining some of the lowest delivery rates in the country. From Roche Percee to Tadmore to La Ronge, and from major urban centres to Indigenous communities and remote resort villages, we provide people across Saskatchewan with affordable, secure energy.

Management’s Discussion and Analysis

Managements Discussion and Analysis Contents 22 Introduction 23 Strategic Scorecard Measures 29 Operating Environment

38 Outlook 39 Risk Management and Disclosure 42 Material Accounting Policies and Estimates 44 Accounting Policy Changes

30 Consolidated Financial Results 36 Liquidity and Capital Resources 37 Capital Additions

Introduction The Management’s Discussion and Analysis (MD&A) highlights the key factors influencing SaskEnergy’s consolidated financial performance for the 12 months ended March 31, 2026. Based on financial and operating results, the MD&A provides insights into the Corporation’s past performance and future prospects from management’s perspective. The MD&A is presented as at May 21, 2026, and should be read alongside the Corporation’s audited consolidated financial statements, which have been prepared in accordance with International Financial Reporting Standards (IFRS ® Accounting Standards). The MD&A contains forward-looking statements, which are subject to inherent uncertainties and risks, as described in the Risk Management and Disclosure section of the MD&A. These forward-looking statements reflect the Corporation’s best estimates and assumptions based on information available at the time. However, actual results and events may vary significantly from those included in, contemplated by, or implied by such statements. The Corporation’s financial results are subject to variation, especially given the volatility of natural gas prices. To compare financial performance from period

to period, the Corporation uses the following measures: income before unrealized market value adjustments; realized margin on commodity sales; and, realized margin on asset optimization sales. Each measure removes the impact of fair value adjustments on financial and derivative instruments and the revaluation of natural gas in storage to the lower of cost and net realizable value. Unrealized market value adjustments vary considerably with the market prices of natural gas, significantly impact the Corporation’s consolidated net income, and may obscure other business factors that are important to understand the Corporation’s financial results. The measures mentioned above are non-IFRS measures, meaning they lack a standardized definition and may not be comparable to similar measures presented by other entities. The discussion of the Corporation’s results in the MD&A, set out on the following pages, is a comparison of the results for the 12 months ended March 31, 2026, to the results for the 12 months ended March 31, 2025, unless otherwise noted.

Management’s Discussion and Analysis

Strategic Scorecard Measures Natural gas plays a critical role in Saskatchewan’s energy and economic landscape, with demand continuing to grow. Safe, reliable and affordable service has been, and will continue to be, the hallmark of SaskEnergy’s natural gas delivery to the people, businesses and industries of Saskatchewan. With a strong foundation in place, SaskEnergy is well-positioned to meet increasing energy needs. The organization’s strategic plan reinforces this commitment by focusing on the delivery of natural gas and energy solutions that evolve alongside the needs of Saskatchewan’s people and economy. SaskEnergy’s strategy is anchored by the Crown Sector Strategic Priorities, which provide direction and outline the shareholder’s expectations to allow for the alignment of goals. SaskEnergy utilizes a Balanced Scorecard approach in organizing its strategic objectives and in measuring overall corporate performance. To support the achievement of its strategic imperatives, SaskEnergy has identified a mix of key objectives and outcomes

among four quadrants — Organizational, Operational, Financial and Customer. To monitor success in each quadrant, a number of measures have been identified. Targets for each measure have been set to benchmark success in achieving SaskEnergy’s strategic goals. The final scorecard, including metrics and targets for the five-year planning horizon, is presented to SaskEnergy’s Board of Directors as part of the annual Corporate Plan approval. The Crown Investments Corporation (CIC) Board reviews the plan and confirms alignment with the Crown Sector Strategic Priorities prior to its approval. Progress toward these targets is monitored and reported throughout the year, allowing management to take corrective action to achieve the targets. The following discussion outlines the Corporation’s 2025-26 performance relative to its strategic scorecard targets for the 12 months ended March 31, 2026, which are further defined in the Glossary of Key Success Measures.

Organizational The Organizational quadrant is the foundation of SaskEnergy’s strategic plan, creating the environment and providing the resources to achieve our imperatives and fulfill our long-term vision. It focuses on optimizing the organization today while building the teams and skills needed for the future, supported by digital transformation where innovation is

enabled by technology. Organizational Strategic Measures For the years ended March 31 Employee Experience

2025 Actual

2026 Actual

2026 Target

2027 Forecast

2028 Forecast

2029 Forecast

2030 Forecast

2031 Forecast

N/A - Non- Survey Year

Below Public Sector Average

N/A - Non- Survey Year

Above Public Sector Average

N/A - Non- Survey Year

Above Public Sector Average

N/A - Non- Survey Year

Above Public Sector Average

Employee Experience

Safety Culture

100% Composite Score

85.0%

Safety Index

96.0%

Workforce Development Vacancies Filled by Internal Applicants Women in Management Roles Indigenous Workforce Representation Digital Transformation Technology Enabled Benefits

71.0%

67.0%

54.0% 56.0% 58.0% 60.0% 60.0% 60.0%

36.0%

37.0%

41.0% 42.0% 43.0% 44.0% 45.0% 46.0%

12.1%

13.0%

13.5% 14.0% 14.5% 15.0% 15.5% 16.0%

N/A – New Measure

$1.9M

$1.0M $2.0M $2.0M $2.0M $2.0M $2.0M

Management’s Discussion and Analysis

Employee Experience SaskEnergy recognizes that its employees are critical to its success. Employee experience is primarily dependent on a positive corporate culture, supportive managers/ supervisors, trust in leadership, and opportunities to perform meaningful work. SaskEnergy’s commitment to employee training and development prepares its workforce for the future and allows for stronger business outcomes, while enhancing its ability to recruit and retain talented individuals. SaskEnergy strives to create the conditions required for a positive employee experience. A biennial survey is used to gauge SaskEnergy employees’ perceptions of various workplace dimensions and compare those results against data from other companies in the public sector in Canada. The most recent survey was conducted March 2025, leading to leadership teams from across the company developing action plans and tracking the outcomes driven by those plans, with the goal to improvement and increased engagement among its workforce. The next survey is planned for March 2027. Safety Culture As one of its corporate values, SaskEnergy is committed to personal safety, the safety of its people and the public. SaskEnergy believes that a strong safety culture is critical to success — instilling safe practices in its operations, decision making and daily activities. SaskEnergy takes a continuous improvement approach to corporate safety, including actively engaging other agencies and industry associations in an effort to promote awareness and share learnings. The Safety Index includes two leading (predictors of good safety performance) and two lagging safety indicators, which are equally weighted at 25 per cent each when calculating the overall Safety Index score. While performance in the leading indicators — Hazard Near Miss Reporting and Management Time in Field — were strong, the 2025-26 index result did not meet the target of 100 per cent. A final score of 85 per cent was largely a result of the lagging indicators — Preventable Vehicle Collisions and Total Recordable Injury Frequency — being below the targeted performance. A large number of recorded injuries were the result of slips, trips and falls that occurred over the winter months, which typically have a lower injury severity. This is evidenced by our better-than-target injury severity rate in 2025-2026. While the frequency of injuries increased, the severity of these injuries was lower than expected. Management is reviewing the contributing factors and evaluating actions to be taken to return results to target.

Workforce Development SaskEnergy takes pride in its people. As one of Canada’s Top 100 Employers, the organization is committed to maintaining a representative workforce, to recognizing the value of our people, and investing in our team so they can meet customer needs and expectations. With more than 1,200 employees across Saskatchewan, the Corporation’s goal is to provide a workplace that offers challenging opportunities for growth within a safe and engaging environment where all ideas are valued, respected and welcomed. The Vacancies Filled by Internal Applicants is a measure of the number of jobs filled by existing in-scope and out-of-scope employees and is a benchmark of mobility and career opportunities inside the organization. The percentage of jobs filled internally in 2025-26 was 71 per cent, which remains well above the targeted benchmark, demonstrating a commitment to leveraging our internal talent for career opportunities. For the year, women accounted for 36 per cent of management roles, versus a benchmark of 41 per cent. The percentage of Indigenous employment at 12.1 remains below the targeted benchmark of 13.5 per cent. Women in Management Roles and Indigenous Workforce Representation remain priorities, as SaskEnergy continues to progress towards a more representative workforce. SaskEnergy aims to provide opportunities to qualified people, and is committed to the attraction, retention and engagement of its employees. A representative workforce will continue to be a priority as the recruiters and hiring managers, with support from all levels of the organization, remain committed to achieving our targets. Digital Transformation A new scorecard measure was introduced in 2025-26 to track the quantifiable benefits realized via technology adoption, implementation or advancement, as digital transformation is a strategic priority area. This is a cumulative metric and depends on work completed throughout the year. Reported benefits equate to $1.9 million; the majority of which is efficiency gains from automation and process improvements mostly focused on enhanced data and reporting.

Management’s Discussion and Analysis

Operational SaskEnergy strives to pair effective processes with optimized resources to meet customer expectations for affordable, reliable service and deliver on its environmental commitments. Operational Strategic Measures For the years ended March 31 2025 Actual 2026 Actual 2026 Target 2027 Forecast 2028 Forecast 2029 Forecast 2030 Forecast 2031 Forecast

Operational Excellence Distribution – Operating and Maintenance Costs per Customer vs. Saskatchewan Consumer Price Index (CPI) (% Growth) Transmission – Operating and Maintenance Costs per Asset Value vs. Saskatchewan Consumer Price Index (% Growth) Residential Delivery Rates Reliability Unplanned Distribution Customer Outage Events Greener Energy Provider Cumulative GHG Emissions Reduction Relative to 2019 Baseline (Tonnes CO 2 e) Customer GHG Savings (Tonnes CO 2 e/year) from Natural Gas Conservation Programs

1.2% above Sask. CPI

1.1% above Sask. CPI

2.5% above Sask. CPI

3.5% above Sask. CPI

1.0% above Sask. CPI

At or below Sask. CPI

Below Sask. CPI

Competitive Competitive

Competitive Competitive Competitive Competitive Competitive Competitive

2.5% reduction (24% cumulative)

27.1% (cumulative)

21.5% (cumulative)

2.5% reduction

3.0% reduction

22,727

18,900

23,000 18,500 18,500 18,500 18,500 18,500

Operational Excellence Operational excellence includes standardization, simplicity and ease of use in the delivery of services. It is about providing services in a way that reduces costs, thereby maintaining reasonable, competitive rates, but also delivering a modern, accessible customer experience. Processes are viewed through the lens of customer value, and resources are allocated to those functions that support that value. Operating and maintenance expenses for the distribution business increased at a higher rate than the Consumer Price Index in 2025-26. However, the increase was lower than expected. While operating and maintenance costs also increased for the transmission business, the increase remained below the change in the Consumer Price Index, primarily due to stable third-party transportation expense costs.

Despite having the lowest number of customers per kilometre of pipeline, SaskEnergy continues to achieve its goal of having residential delivery rates that are competitive with the major utilities across Canada. A typical residential customer in Regina paid $600 for delivery service in 2025-26 — the third-lowest delivery rate in Canada, behind Winnipeg, Manitoba ($554) and Hamilton, Ontario ($545). Although inflation- related pressures have seen costs continue to grow, SaskEnergy’s delivery rates have remained stable while many comparative jurisdictions have increased rates for delivery service. SaskEnergy will continue to focus on maintaining competitive, affordable rates for its customers through efficiencies and operational excellence.

Management’s Discussion and Analysis

Reliability SaskEnergy’s system integrity, safety and environmental protection programs combine predictive analysis and proactive response to help drive the reliability of the natural gas system and service delivery. Program effectiveness is demonstrated through reduced levels of gas leaks, failures and third-party contacts, and other measures. Unplanned Distribution Customer Outage Events arise from activities such as third-party damage (line hits), operator error, facilities failure, and security issues that cause service disruptions affecting more than one customer. The outage events in the year ending March 31, 2026 were higher than expected with a total of 38 reported outages, up from 18 reported in 2024-25. SaskEnergy will utilize its programs and processes to analyze potential factors in the increase and progress towards a reduced number in future years.

Environment and Energy Solutions SaskEnergy continues to concentrate on monitoring and reducing the environmental impact of its operations. SaskEnergy’s operational greenhouse gas (GHG) emissions show a continued decline compared to the 2019 baseline. Cumulative GHG emissions continue to be achieved relative to 2019 levels through efforts such as infrastructure enhancements, improved data and analysis, and installation of emissions reduction technology and equipment. At the end of 2025-26, SaskEnergy reached a reduction in operational emissions of 27.1 per cent relative to 2019, surpassing its target and making strong progress on achieving the goal of a 35 per cent reduction by 2030. Additional contributing factors this year included reduced engine runtimes for compression as a result of operational efficiencies and warmer than normal temperatures, as well as improved measurement of electricity consumption. SaskEnergy is also committed to assisting customers in their own efforts to make their homes and businesses more energy efficient. Maturing and evolving residential and commercial equipment rebates are available year- round to encourage and support the installation of high- efficiency equipment. In recent years, SaskEnergy has introduced programs for homes built to higher energy efficiency levels than minimum code requirements, as well as furnace upgrades for First Nations and income- qualified households. In 2025-26, SaskEnergy launched the Heating Affordability Program, which assists income- qualifying homeowners in the replacement of their current furnace with a high-efficiency furnace at no cost — helping reduce their energy use and lower their annual energy bills. In 2025-26, customers who participated in programs reduced their annual emissions by a total of 22,727 tonnes of CO 2 e, exceeding last year’s results by 20 per cent. These programs continue to perform very well year over year.

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