Management’s Discussion and Analysis
Investing Activities Cash used in investing activities decreased by $23 million compared to the same period in 2025, primarily reflecting lower capital investments in customer growth projects. Lower capital spending in the current period reduced overall cash requirements compared to the prior year. Financing Activities Cash used in financing activities was $42 million for the three months ended June 30, 2026, compared to cash provided by financing activities of $16 million in the same period in 2025. The $58 million decrease was primarily attributable to changes in short-term debt, which decreased by $33 million in the current period compared to an increase of $30 million in the prior- year period. In 2025, short-term debt was utilized to fund operating requirements and short-term liabilities while interest rates were favourable. Improved operating cash flows and lower overall cash requirements in the current period reduced the need for short-term financing, resulting in the repayment of short-term debt. Capital Additions Capital additions, as reported in the condensed consolidated financial statements, were as follows:
Three months ended June 30,
(millions)
2026
2025 Change
Customer growth System expansion Risk management
$
15
$
31
$
(16)
7
7
- -
17
17
Reliability of natural gas service
3 1
7 4
(4) (3)
Business and technology optimization
Capital additions
$
43
$
66
$
(23)
SaskEnergy is committed to providing solutions and services that benefit customers and Saskatchewan, leveraging the Corporation’s expertise and Saskatchewan’s private sector. To meet these needs the Corporation deploys capital among strategic projects to fund customer growth or create new business capabilities. Maintaining current capacity and service levels are the focus of sustainment capital programs which include key focus areas of maintaining the safety and reliability of the natural gas transmission and distribution systems and supporting the emissions reduction strategy. Following recent years of near record capital plans, the 2026-27 budget indicates a more modest level of capital investment as several large projects are winding down and efforts to streamline operational capital programs have been undertaken. Throughout the year, SaskEnergy will make more than $221 million in net capital investments across the province. Customer Growth SaskEnergy has a franchise obligation to provide distribution and transmission service to customers in Saskatchewan. Investment in customer growth projects of $15 million were $16 million lower than 2025 investment levels due to timing of spend on some major customer projects. System Expansion SaskEnergy closely scrutinizes the need for additional infrastructure and monitors customer activity through a variety of channels to identify when system expansion is needed to accommodate growth. Recent years have included significant spending on several large compression expansion projects around the province, however 2026-27 will see a transition as some of those projects have been principally completed. While some large projects remain in execution, there is minimal change to the year over year spend. Risk Management Capital investment in safety and system integrity continues to be SaskEnergy’s top priority. SaskEnergy takes a long-term view and uses a risk-based approach to determine project priorities and the appropriate level of total integrity spending. Industry comparable data also provides reference, as the industry as a whole has progressively elevated safety and system integrity
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