SaskEnergy First Quarter Report June 30, 2024

Management’s Discussion and Analysis

Saskatchewan Prices In contrast to most of the world, Saskatchewan’s natural gas prices were characterized by lower volatility and prices through the first quarter of 2024-25. The AECO daily index averaged $1.11 per GJ through the quarter, compared to $2.34 per GJ the prior year, with the decline primarily a function of increased production, cooler temperatures, and relatively full storage levels. Traditionally, most natural gas in Saskatchewan is priced at a differential to the AECO price, with this differential for the quarter averaging a premium of $0.04 per GJ compared to $0.05 per GJ the year prior. Despite lower overall prices, the locational differential was nearly unchanged. The following chart shows AECO natural gas prices:

AECO Monthly Index Historical Prices

$8.00

$7.00

2015-Present Average Price $2.54/GJ

Forward Price at June 30, 2024 Average Price: $2.96/GJ

$6.00

$5.00

$4.00

$3.00

$2.00

$1.00

$0.00

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

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