Notes to the Consolidated Financial Statements
c. Liquidity risk Liquidity risk is the risk that the Corporation is unable to meet its financial obligations as they become due. The Corporation has credit facilities available to refinance maturities in excess of anticipated operating cash flows. The contractual maturities of the Corporation’s financial obligations, including interest payments and the impact of netting agreements, as at March 31, 2024 were as follows: Contractual Maturities
Carrying Amount
Less Than 1 Year
More Than 5 Years
(millions)
1 - 2 Years 3 - 5 Years
Short-term debt
$
245 $
245 $
- $
- $
- - -
Trade and other payables
143
143
- -
- -
Dividends payable Long-term debt
6
6
1,767
165
135
237
2,455
Fair value of derivative instrument liabilities (net contract maturities)
26
37
29
36
- -
Commitments
163
163
-
-
$
2,350 $
759 $
164 $
273 $ 2,455
As at March 31, 2024, the Corporation’s borrowing capacity, together with relatively stable operating cash flows, provide sufficient liquidity to fund these contractual obligations. Interest rates used in calculating financial obligations are effective March 31, 2024. The Corporation has also posted a $20 million (2023 - $34 million) letter of credit with ICE NGX as security for natural gas purchases and sales conducted by the Corporation on the ICE NGX natural gas exchange in Alberta. ICE NGX may draw upon the letter of credit if the Corporation fails to make timely payment for, or delivery of, natural gas as per the related contract. In addition to the above, the Corporation has posted a Parental Guarantee Agreement with MIPL in the amount of $200 million. As part of the guarantee, the Corporation must have $10 million readily available. Guaranteed funds are for any amounts that may be due by MIPL under the Canadian Energy Regulator Act.
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