SaskEnergy First Quarter Report - June 30, 2026

Notes to the Consolidated Financial Statements (unaudited)

As at June 30, 2026

As at March 31, 2026

(millions)

Lease liability, beginning of period

$

18

$

13 11

Net additions

1

Principal repayment of lease liability

(2)

(6)

Lease liability, end of period

$

17

$

18

The weighted average discount rate applied to computer leases and vehicle leases is 4.0 per cent based on the rates implicit in the agreements. The weighted average discount rate applied to building leases is 4.0 per cent based on the Corporation’s incremental borrowing rate. The following table summarizes, as at June 30, 2026, the future minimum lease payments and the present value of the lease liability by fiscal year of maturity. Amounts for 2027 represent the remaining nine months of the fiscal year ending March 31, 2027, while amounts for 2028 and subsequent years represent full twelve-month fiscal periods:

(millions)

2027

2028

2029

2030

2031

Future minimum lease payments Present value of lease liability

$ $

5 5

$ $

5 5

$ $

4 3

$ $

3 3

$ $

1 1

8. Long-Term Debt

As at June 30, 2026

As at March 31, 2026

(millions)

Balance, beginning of period

$

1,936

$

1,862

Proceeds Repayment

48

149

-

(75)

Balance, end of period

1,984

1,936

Less: Current portion of long-term debt

(17)

(17)

$

1,967

$

1,919

On May 8, 2026, the Corporation entered into an agreement with the Province to borrow an additional $50 million of long- term debt. The debt was issued at a discount of $2 million, bears a coupon interest rate of 4.4 per cent and matures in 2056.

9. Commitments

As at June 30, 2026, the Corporation had $175 million (March 31, 2026 - $94 million) of outstanding contractual commitments for the procurement of goods and services in the future.

The Corporation entered into commodity contracts for the physical purchase of natural gas that qualify as own-use contracts. The following table summarizes, as at June 30, 2026, the notional value of outstanding own-use natural gas contracts by fiscal year of maturity. Amounts for 2027 represent the remaining nine months of the fiscal year ending March 31, 2027, while amounts for 2028 and subsequent years represent full twelve-month fiscal periods.

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