SaskEnergy First Quarter Report - June 30, 2026

Notes to the Consolidated Financial Statements (unaudited)

(millions)

2027

2028

2029

2030

2031 Thereafter

OWN-USE PHYSICAL NATURAL GAS CONTRACTS Notional value

$

76

$

102 $

123 $

101

$

74

$

191

Notional value - estimated undiscounted cash outflow

10. Unrealized Market Value Adjustments

For the Three Months Ended June 30,

(millions)

2026

2025

Change in fair value of natural gas derivative instruments

$

1 2 3

$

(6) (1) (7)

Change in fair value through OCI

$

$

Unrealized market value adjustments represent the net income impact of measuring certain financial and derivative instruments at fair value subsequent to initial recognition (Note 4) and measuring natural gas in storage at the lower of weighted average cost and net realizable value. These adjustments represent the change in the carrying amount of the related item during the period and are dependent on the market prices and expected delivery dates at the end of the reporting period. Unrealized market value adjustments through OCI represent the income impact of measuring debt retirement funds at fair value subsequent to initial recognition. The adjustment represents the change in the carrying amount of debt retirement funds during the period and is dependent on the market prices of the financial instruments held in the debt retirement funds at the end of the reporting period.

11. Natural Gas Sales and Purchases

For the Three Months Ended June 30,

2026

Asset 2025

Asset

(millions)

Commodity Optimization Total

Commodity Optimization Total

NATURAL GAS SALES Realized sales

$

31

$

24

$

55

$

25

$

33

$

58

Change in fair value of natural gas derivative instruments

-

(1)

(1)

-

4

4

31

23

54

25

37

62

NATURAL GAS PURCHASES Realized purchases (net of change in inventory) Change in fair value of natural gas derivative instruments

(26)

(18)

(44)

(20)

(27)

(47)

1

1

2

(7)

(3)

(10) (57)

(25)

(17)

(42)

(27)

(30)

$

6

$

6

$

12

$

(2)

$

7

$

5

25

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