SaskEnergy Third Quarter Report - December 31, 2018

7. Commitments and contingencies (continued)

a. Commitments (continued)

At period end, the Corporation had $117 million of outstanding contractual commitments for the procurement of goods and services in the future. The Corporation has entered into commodity contracts for the physical purchase of natural gas that qualify as own- use contracts. As at December 31, 2018 own-use natural gas derivative instruments had the following notional values and maturities for the next five years:

(millions)

2019

2020

2021

2022

2023

Total

Own-use physical natural gas contracts

Notional value

$

(16)

$

(62)

$

(65)

$

(61)

$

(44)

$

(248)

Notional value - estimated undiscounted net cash outflow

b. Contingencies

The Corporation is involved in litigation resulting from the 2014 natural gas incident in the community of Regina Beach, Saskatchewan. The Corporation does not expect the outcomes to result in any material financial impact.

8. Unrealized market value adjustments

For the Three Months Ended December 31

For the Nine Months Ended December 31

2018

2017

2018

2017

(millions)

Change in fair value of natural gas derivative instruments

$

12

$

10

$

13 14

$

14

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

(2)

-

(7)

$

10

$

10

$

27

$

7

9. Natural gas sales and purchases

For the Three Months Ended December 31 2018 2017 Asset Asset

Commodity Optimization Total

(millions)

Commodity Optimization Total

Natural gas sales Natural gas sales to commodity customers

$

70

$

-

$

70

$

81

$

-

$

81

Realized on natural gas derivative instruments

-

54

54

-

66

66

Change in fair value of natural gas derivative instruments

-

6

6

-

(4)

(4)

70

60

130

81

62

143

Natural gas purchases Realized on natural gas derivative instruments

(53)

(46)

(99)

(65)

(60)

(125)

Change in fair value of natural gas derivative instruments Change in revaluation of natural gas in storage to net realizable value

(5)

11

6

(7)

21

14

-

(2)

(2)

-

-

-

(58)

(37)

(95)

(72)

(39)

(111)

$

12

$

23

$

35

$

9

$

23

$

32

25

2018-19 THIRD QUARTER REPORT

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