SaskEnergy Third Quarter Report - December 31, 2021

Notes to the Condensed Consolidated Financial Statements (unaudited)

11.

COMMITMENTS AND CONTINGENCIES

a. Commitments As at December 31, 2021, the Corporation had $56 million (2020 - $90 million) of outstanding contractual commitments for the procurement of goods and services in the future. During the period, the Corporation entered into commodity contracts for the physical purchase of natural gas that qualify as own-use contracts. As at December 31, 2021, own-use natural gas derivative instruments had the following notional values and maturities for the next five fiscal years:

(millions)

2022

2023

2024

2025

2026 Thereafter

OWN-USE PHYSICAL NATURAL GAS CONTRACTS

Notional value

$

19

$

71

$

70

$

86

$

89

$

229

Notional value - estimated undiscounted cash outflow

b. Contingencies The Corporation is involved in litigation claims, which the Corporation does not expect the outcomes to result in any material, negative financial impact.

12.

UNREALIZED MARKET VALUE ADJUSTMENTS

For the Three Months Ended December 31,

For the Nine Months Ended December 31,

(millions)

2021

2020

2021

2020

$

(22)

$

30

Change in fair value of natural gas derivative instruments

$

(12)

$

12

-

-

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

-

6

$

(22)

$

30

$

(12)

$

18

Unrealized market value adjustments represent the net income impact of measuring certain financial and derivative instruments at fair value subsequent to initial recognition (Note 5) and measuring natural gas in storage at the lower of weighted average cost and net realizable value (Note 4). 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.

p.27

Made with FlippingBook Ebook Creator