SaskEnergy First Quarter Report - June 30, 2025

Fi rst Quarter Report June 30, 2025

Community Aspiration Environmental sustainability and economic prosperity for future generations of Saskatchewan. Vision Providing critical energy to support a prosperous Saskatchewan. Mission SaskEnergy delivers natural gas and energy solutions responsibly to the residents, businesses and industries of Saskatchewan.

Values

Safety We commit to our personal safety, the safety of our team and the public.

Integrity We are accountable for our decisions, our actions, and the results.

Stewardship We align resources towards the greatest and most responsible impact.

Teamwork We collaborate, respect, and trust

one another. We are diverse and inclusive.

TABLE OF CONTENTS Financial and Operating Highlights Management's Discussion and Analysis Introduction

3 4 4 9

Consolidated Financial Results Liquidity and Capital Resources Capital Additions Outlook Consolidated Financial Statements

1 1 1 0 1 3

Financial and Operating Highlights

Three months ended June 30,

CONSOLIDATED FINANCIAL INFORMATION ($ millions)

2025

2024

Delivery

61 65

61 62

Transportation and storage Realized commodity margin

5 6

6 1 3

Realized asset optimization margin Customer capital contributions

Total revenue and margins

162

133

Employee benefits

33 57 35

32 49 34

Operating and maintenance Depreciation and amortization

Saskatchewan taxes Net finance expense

Other net losses Total expenses

151

139

Net income (loss) before unrealized market value adjustments

(6) (4)

Market value adjustments

(6)

CONSOLIDATED NET INCOME (LOSS) Cash provided by operating activities Cash used in investing activities

(10)

(67)

(36) (61)

Cash provided by (used in) financing activities

Dividends declared

Total assets Total net debt

3,772 1,926 59.4%

3,571 1,822 59.4%

Debt/Equity ratio

OPERATING STATISTICS Distribution energy (petajoules) Residential/Farm

4 5

5 5

Commercial

Industrial

45 54

45 55

Total

Weather (compared to last 30 years) Transmission energy (petajoules) Domestic

11% warmer

4% warmer

Export

Total

Cash used in Investing Activities $ millions

Income (Loss) before MVA $ millions

Cash from Operations $ millions

$86

$11

100

$79

$67

$51

$36

$32

-$6

(15)

2025

2024

2023

2025

2024

2023

2025

2024

2023

Management’s Discussion and Analysis

Introduction The Management’s Discussion and Analysis (MD&A) highlights the primary factors that affected SaskEnergy’s consolidated financial performance for the three months ended June 30, 2025. Using financial and operating results as its basis, the MD&A describes the Corporation’s past performance and future prospects, enabling readers to view SaskEnergy from the perspective of management. The MD&A is presented as at August 27, 2025 and should be read in conjunction with the Corporation’s condensed consolidated financial statements, which have been prepared in accordance with IAS 34 Interim Financial Reporting using accounting policies consistent with IFRS® Accounting Standards. For additional information related to the Corporation, refer to SaskEnergy’s 2024-25 Annual Report. The MD&A contains certain forward-looking statements that are subject to inherent uncertainties and risks. Many of these risks are described in the Risk Management and Disclosure section of SaskEnergy’s 2024-25 Annual Report. All forward-looking statements reflect the Corporation’s best estimates and assumptions based on information available at the time the statements were made. However, actual results and events may vary significantly from those included in, contemplated by, or implied by such statements. The volume of natural gas delivered to customers is sensitive to variations in weather, particularly through the prime heating season of November to March. Additionally, changes in market value adjustments may cause significant fluctuations in net income due to the volatility of natural gas prices. Therefore, the condensed consolidated financial results for the first three months of 2025-26 should not be taken as indicative of the performance to be expected for the full year. The Corporation’s financial results are subject to variation, especially given the volatility of natural gas prices. To compare financial performance from period to period, the Corporation uses the following measures: income before unrealized market value adjustments; realized margin on commodity sales; and realized margin on asset optimization sales. Each measure removes the impact of fair value adjustments on financial and derivative instruments and the revaluation of natural gas in storage to the lower of cost and net realizable value. Unrealized market value adjustments vary with market prices of natural gas, drive significant changes in the Corporation’s consolidated net income and may obscure other business factors that are also important to understand the Corporation’s financial results. The measures referred to above are non-IFRS Accounting Standard measures, in that there is no standardized definition and may not be comparable to similar measures presented by other entities. The discussion of the Corporation’s results in the MD&A, set out on the following pages, is a comparison of the results for the three months ended June 30, 2025, to the results for the three months ended June 30, 2024, unless otherwise noted.

Consolidated Financial Results Consolidated Net Income (Loss)

Three months ended June 30,

(millions)

2025

2024

Change

Net income (loss) before unrealized market value adjustments

(6) (3) (1)

Impact of fair value adjustments Revaluation of natural gas in storage Consolidated net income (loss)

(6)

(3)

(10)

The net income before unrealized market value adjustments was $11 million at June 30,2025, $17 million favourable compared to a net loss of $6 million in 2024, resulting from higher asset optimization margins and increased customer capital contributions. These were partially offset by the unfavourable impact of higher operating and maintenance expenses. The Corporation’s realized margin on asset optimization activities for the three months ended June 30, 2025, was $5 million higher than in 2024, as the margin increased $0.16 per GJ compared to prior year. In addition to improved margins compared to the prior year, volumes were also higher as more opportunities were available in the market. Furthermore, customer capital contributions from customers increased by $22 million in the first quarter of the year as a result of increased transmission customer connection activity. These favourable results were partially offset by higher operating and maintenance expenses, as contracts and consulting expenses and third-party transportation costs were higher year over year.

Management’s Discussion and Analysis

Forward natural gas market prices at June 30, 2025, declined below March 2025 levels, generating a $6 million unfavourable fair value adjustment as the unfavourable price differential between average deal price and average market price on outstanding commodity purchase contracts declined a further $0.31 per GJ at June 30, 2025, compared to March 31, 2025. In addition, natural gas in storage at June 30, 2025, was recorded at the weighted average cost of gas, which was equal to the net realizable value. There was no impact on 2025 net income resulting from the revaluation of natural gas in storage. Natural Gas Sales and Purchases Included within natural gas sales and purchases are rate-regulated commodity sales to distribution customers and non- regulated asset optimization activities. IFRS Accounting Standards requires these activities to be presented together within the consolidated financial statements; however, the Corporation manages these activities as distinct and separate businesses and, as such, the MD&A addresses these natural gas sales and purchases separately. With the exception of those contracts entered into for an entity’s normal usage, IFRS Accounting Standards requires derivative instruments such as natural gas purchase and sales contracts to be recorded at fair value until their settlement date. Changes in the fair value of the derivative instruments, driven by changes in future natural gas prices, are recorded in net income through natural gas sales or natural gas purchases depending on the specific contract. Upon settlement of the natural gas contract, the amount paid or received by SaskEnergy becomes realized and is recorded in natural gas sales or purchases. The majority of SaskEnergy’s natural gas contracts are normal usage and are not recorded at fair value but at the contract price upon settlement. Commodity Sales Subject to Section 16 of The SaskEnergy Act , SaskEnergy’s charges, rates, terms and conditions are described in a Terms & Conditions of Service Schedule. This schedule sets natural gas commodity rates, as approved by Provincial cabinet, based on the recommendations of the Saskatchewan Rate Review Panel (SRRP). The commodity rate is determined based on rate- setting principles and is designed to recover the realized costs associated with the sale of natural gas to distribution customers. Regulatory principles require that utilities neither earn a profit nor realize losses on the sale of gas to customers over the long term. Consequently, SaskEnergy accumulates differences between the commodity revenue earned and the cost of natural gas sold in a Gas Cost Variance Account (GCVA). The balance in the GCVA, which is not included in SaskEnergy’s financial statements, is either recovered from, or refunded to, customers as part of future commodity rates. SaskEnergy prepares its financial statements on a consolidated basis while applying IFRS Accounting Standards. Consequently, the amounts determined for rate-setting purposes are different than those reported within its consolidated financial statements. A gain or loss reported in the Corporation’s consolidated financial statements may not be reflected in the GCVA. SaskEnergy’s natural gas price risk management program has two objectives: to reduce the impact of natural gas price volatility on the cost of gas; and to support rates that are competitive with other utilities. Reducing the impact of price volatility requires establishing certainty in the cost of gas, while supporting competitive rates often means allowing purchase prices to follow market prices. As a result, the balance between the two opposing objectives may change depending on current market conditions. In order to ensure a secure supply of natural gas, SaskEnergy contracts for the physical delivery of natural gas using non- financial derivatives, referred to as forward or physical natural gas contracts. The purchase price contained in these forward contracts may be fixed, or it may be based on a variable index price. While fixed price contracts reduce the impact of natural gas price volatility, variable or market prices can assist in offering competitive rates depending on the pricing environment. SaskEnergy may also use financial derivatives and physical swaps to manage the future purchase price of natural gas.

Management’s Discussion and Analysis

The commodity sales to customers, as reported in the condensed consolidated financial statements, was as follows:

Three months ended June 30,

(millions)

2025

2024

Change

Commodity sales

25 20

26 20

(1)

Commodity purchases

Realized margin on commodity sales Unrealized fair value adjustments

(1) (2) (3)

(7) (2)

(5)

Margin on commodity sales

The realized margin on commodity sales excludes the impact of unrealized fair value adjustments on derivative instruments. These adjustments can fluctuate significantly from one period to the next and do not necessarily represent the amount that will be paid upon settlement of the related natural gas contract. The Corporation’s realized margin on commodity sales for the three months ended June 30, 2025, was $1 million lower than in 2024, primarily resulting from sales volumes lower than the same three months in the prior year, due much warmer weather year over year. The commodity margin was largely unchanged from the prior year with both sales prices and cost of gas resulting in a margin of $0.67 per GJ through 2025 compared to $0.66 per GJ margin in 2024. However, as May 2025 was 31 per cent warmer than normal, sales volumes were down during the quarter compared to the prior year. The GCVA balance was $11 million owing to customers at June 30, 2025, which equals the balance at March 31, 2025 — as the market price of natural gas continues to keep the cost of gas lower than anticipated, maintaining the balance owed to customers in the short term. Commodity Fair Value Adjustments For the three months ending June 30, 2025, the fair value adjustment on commodity derivative instruments decreased the margin on commodity sales by $7 million. The unfavourable price differential of $0.17 per GJ between contract prices and market prices on future commodity purchase contracts at March 31, 2025, further declined $0.31 per GJ, to an unfavourable price differential of $0.48 per GJ at June 30, 2025. SaskEnergy segregates a portion of its natural gas purchase contracts for gas that will ultimately be sold to commodity customers. Under IFRS Accounting Standards, such own-use contracts are not required to be reported at market value. Asset Optimization Margin SaskEnergy uses its access to natural gas markets to execute purchases and sales of natural gas to generate margins. By utilizing off-peak transportation and storage capacity, SaskEnergy is able to find opportunities in the market to take advantage of pricing differentials between transportation hubs, delivery points and time periods. In most cases, the Corporation executes purchase and sales contracts at the same time, thereby mitigating much of the price risk that would normally be associated with such transactions. SaskEnergy also uses purchases and sales of natural gas to mitigate transportation constraints, which are executed at a cost. The asset optimization margin, as reported in the condensed consolidated financial statements, was as follows:

Three months ended June 30,

(millions)

2025

2024

Change

Asset optimization sales

33 27

13 12

20 15

Asset optimization purchases

Realized margin on asset optimization sales Unrealized fair value adjustments Revaluation of natural gas in storage

6 1

1 2

(1)

1 5

Margin on asset optimization sales

The realized margin on asset optimization sales for the three months ended June 30, 2025, which removes fair value adjustments on derivative instruments and the revaluation of natural gas in storage, totaled $6 million for the quarter,

Management’s Discussion and Analysis

which was $5 million greater than the same period ending June 30, 2024. During 2025, the average margin on realized asset optimization sales was $0.25 per GJ, which was greater than the same three-month period in 2024 which saw a margin of only $0.09 per GJ. Opportunities in the market saw volumes increase by 9 petajoules year over year, in addition to the improved margins realized year to date. The Corporation was also able to leverage unutilized transportation capacity through the first quarter to recover a portion of third-party transportation costs. Asset Optimization Fair Value Adjustments Through asset optimization strategies, the Corporation enters into various natural gas contracts which are subject to volatility of natural gas market prices until the natural gas contracts are realized. The unrealized fair value adjustment on outstanding asset optimization derivative instruments had a favourable impact of $1 million on the asset optimization margin. Declining natural gas market prices through 2025 resulted in the differential between contract prices and market prices on future asset optimization sales contracts improving $0.24 per GJ, resulting in a $4 million favourable fair value adjustment, offset by a $3 million unfavourable fair value adjustment on asset optimization purchase contracts, which had a $0.16 per GJ margin reduction since the fiscal year end. Revaluation of Natural Gas in Storage The carrying amount of natural gas in storage is adjusted to reflect the lower of weighted average cost and net realizable value. At each reporting period, the Corporation measures net realizable value of natural gas in storage held for asset optimization transactions based on forward market prices and anticipated delivery dates. For the quarter ended June 30, 2025, there was no revaluation on natural gas in storage inventory. Revenue Delivery revenue, transportation and storage revenue, and customer capital contributions, as reported in the condensed consolidated financial statements, were as follows:

Three months ended June 30,

(millions)

2025

2024

Change

Delivery revenue

61 65 25

61 62

Transportation and storage revenue Customer capital contributions

22 25

Revenue

151 $

126

Delivery Revenue SaskEnergy provides reliable energy and competitive rates to customers, as they value low delivery charges. Natural gas delivery rates are designed to recoup all distribution facility and operating costs necessary for delivery of natural gas to customers throughout the year and earn a return for its shareholders. Natural gas storage and transportation costs — as well as ongoing investments related to safety, system integrity and growing infrastructure — are factored into delivery rates. Other considerations impacting natural gas delivery services include regulatory code compliance and industry best practices regarding safety. To minimize the financial impacts of these on delivery service customers, the Corporation strives to make the most effective use of resources and technology, and to collaborate with other Crown corporations and executive government. SaskEnergy continues to focus on items within the Corporation’s control to embed efficiency into processes, such as identifying opportunities for standardization, simplification, and the elimination of waste from processes. SaskEnergy will continue to strive to provide customers with access to low-cost energy sources compared to alternatives and delivery charges that are among the lowest in Canada. Delivery revenue is primarily driven by the number of customers and the amount of natural gas they consume. Weather is the most significant external factor affecting delivery revenue, as residential and commercial customers consume natural gas primarily as heating fuel. Delivery revenue of $61 million through the three months ended June 30, 2025, equaled the prior year results. While weather was seven per cent warmer than the prior year, resulting in less natural gas used as a heat source in homes around the province, the resulting reduction in revenues was offset by more customers served by the Corporation year-over-year.

Management’s Discussion and Analysis

Transportation and Storage Revenue The Corporation generates transportation revenue by receiving gas from customers at various receipt points in Saskatchewan and Alberta and delivering natural gas to customers at various delivery points in the province. The transportation toll structure consists of a receipt service charge, which customers pay when they put gas onto the natural gas transportation system, and a delivery service charge that customers pay when they take delivery from the natural gas transportation system. For receipt and delivery services, the Corporation offers both firm and interruptible transportation contracts. Under a firm service contract, the customer has a right to deliver or receive a specified quantity of gas on each day of the contract. With a firm contract, customers pay for the amount of capacity they have contracted for, whether they use it or not. Under an interruptible contract, customers may deliver or receive gas only when there is available capacity on the system and only pay receipt and delivery tolls when they deliver or receive gas. Integral to the Corporation’s transmission system are several strategically located natural gas storage sites, which have the capacity to provide operational flexibility along with a reliable and competitive natural gas storage service. Transportation and storage revenues of $65 million, for the three months ending June 30, 2025, are $3 million higher than the same period in 2024. An average rate increase of just over three per cent for transportation and storage services was implemented effective April 1, 2025, to address expansion of the transmission system and meet growing demand for The Corporation receives capital contributions from customers to partially offset the cost of constructing facilities to connect them to the transmission and distribution systems. Generally, contributions related to transmission system projects tend to be larger but less frequent than contributions related to the distribution system. The volume and magnitude of contribution revenue can vary significantly period-over-period, as numerous factors influence their receipt and recognition as revenue. Customer capital contributions were $22 million higher in 2025, resulting from the completion of a couple of significant transmission utility customers connections early in the year. Other Expenses SaskEnergy’s expenses are driven to a large degree by its investment in its transmission, distribution and storage systems. Depreciation and amortization expense, net finance expenses and Saskatchewan taxes are directly tied to the investment in facilities. As the level of investment in facilities increases, these expenses also increase. natural gas services in Saskatchewan. Customer Capital Contributions Employee benefit expenses, and operating and maintenance expenses, are also driven by the Corporation’s investment in facilities, although less directly. As the number of customers increases, infrastructure to serve those customers grows, and the costs to operate and maintain the system rise in correlation with the increasing kilometres of gas lines, number of service connections and amount of compression equipment. Additional regulatory requirements and changing public perceptions have resulted in accelerated prevention, detection and mitigation initiatives - adding pressure to transmission and storage, and delivery service rates. Other expenses, net finance expenses and other net losses, as reported in the condensed consolidated financial statements, are as follows:

June 30,

(millions)

2025

2024

Change

Employee benefits

33 57 35

32 49 34

(1) (8) (1)

Operating and maintenance Depreciation and amortization

Saskatchewan taxes

$ $ $

130 $

120

$ $ $

(10)

Net finance expenses

$ $

(1) (1)

Other net losses

Management’s Discussion and Analysis

Employee Benefits Employee benefit costs are trending slightly higher in 2025 than 2024 levels as a result of inflationary wage and salary increases and a small increase in the number of full time equivalents as the Corporation was able to fill previously vacant positions. Operating and Maintenance Operating and maintenance expenses were $8 million higher than in 2024, primarily due to technological contracting costs, implementation costs of new business support software and third-party transportation costs increasing. As the Corporation continues to leverage technology and customer service applications to improve the customer’s experience while also implementing business process improvements, the costs of implementing and hosting these applications continue to rise as more applications are transitioned from owned to subscription models. In addition, the Corporation utilizes third-party transportation to serve customer needs when it is more cost effective than developing new assets. With growing system requirements — resulting from customers continuing to choose, and other customers transitioning to, natural gas as their energy source — transportation costs are increasing due to both rate increases and additional demand service contracts have been placed with third-party transportation providers. Depreciation and Amortization Depreciation and amortization were $1 million higher than the same period in 2024, as the Corporation continues to balance the safety and system integrity of its natural gas infrastructure with the demand of its residential, commercial and industrial customer base. Strategic capital investments required that necessary infrastructure be put in-service to meet this growing customer demand. Net Finance Expenses Net finance expenses for 2025 were $1 million higher than in 2024. While interest rates and debt levels remained somewhat static year-over-year, a loss was realized on the redemption of a debt retirement fund used to extinguish a long- term debt maturity during the period. The debt-to-equity ratio at June 30, 2025, is 59 per cent, which falls within the long-term target range of 58 to 63 per cent debt. Liquidity and Capital Resources As a Crown corporation, SaskEnergy’s primary sources of capital are cash from operations and debt — which is borrowed through the Province’s General Revenue Fund. Cash from operations is SaskEnergy’s most important source of capital. As a utility, cash from operations is relatively stable and the Corporation relies on it to fund a significant proportion of its investment in its natural gas facilities, and the debt servicing costs on those investments. Long- and short-term debt can be borrowed through the Province of Saskatchewan to meet any long- or short-term incremental capital requirements, and to repay debt as it matures. Sources of liquidity include Order in Council authority to borrow up to $500 million in short-term loans, and a $50 million line of credit with the Toronto-Dominion Bank. Within this line of credit, the Corporation provides a $20 million letter of credit with ICE NGX as security for natural gas purchases and sales conducted by the Corporation of the ICE NGX natural gas exchange in Alberta, leaving $30 million uncommitted. Under The SaskEnergy Act, the Corporation may borrow up to $2,500 million of debt upon approval of the Lieutenant Governor in Council.

Three months ended June 30,

(millions)

2025

2024

Change

Cash provided by operating activities Cash used in investing activities

(28) ( 31)

(67)

( 36) ( 61) (18)

Cash provided by (used in) financing activities Decrease in cash and cash equivalents

77 18

Operating Activities Cash provided by operating activities decreased $28 million through the three months ended June 30, 2025, compared to the same period in 2024, primarily due to unfavourable changes in working capital offsetting the positive operating results. High short term liability balances were paid down in the first quarter which more than offset the positive cash flow from asset optimization activities and customer capital contributions.

Management’s Discussion and Analysis

Investing Activities Cash used in investing activities increased $31 million compared to 2024, primarily due to major capital investments in customer growth and system expansion projects. Financing Activities Cash provided by financing activities grew $77 million in 2025 compared to 2024, primarily due utilizing short term debt, at lower rates, to fund operating activities and short-term liabilities. During the first quarter of 2025-26, the Corporation borrowed an additional $75 million of long-term debt at a discount of $1 million and used it and the associated to debt retirement fund proceeds of $44 million, to pay down a long-term debt maturity of $75 million and capital activities throughout the quarter. In addition, the Corporation used $29 million for interest payments and $16 million for dividend payments.

Capital Additions Capital additions, as reported in the condensed consolidated financial statements, were as follows:

Three months ended June 30,

(millions)

2025

2024

Change

Customer growth System expansion Risk management

5 1 4 2

Reliability of natural gas service

7 4

3 2

Business and technology optimization

Capital additions

SaskEnergy is committed to providing solutions and services that benefit customers and Saskatchewan, leveraging the Corporation’s expertise and Saskatchewan’s private sector. The Corporation deploys its strategic capital to fund customer growth and create new business capabilities. Fulfilling customer demand for additional natural gas capacity is a core responsibility for the Corporation and demand is forecasted to moderately increase as a result of the growing industrial and power generation sectors. Key focus areas include maintaining the safety and reliability of the natural gas transmission and distribution systems, enhancing customer experience, and supporting the emissions reduction strategy. Capital additions through the three months ended June 30, 2025, were $32 million higher than the investment made in 2024, primarily due to increasing expenditures in customer growth and system expansion projects. Customer Growth Investment in customer growth projects of $31 million was $20 million higher than 2024 investment levels, as the Corporation continues to focus on investments that connect customers to the transmission system, particularly larger projects connecting major power generation facilities. System Expansion System expansion capital projects provide incremental capacity for the transmission and distribution systems, through the installation of new or expanded gas line or facility assets, thus enabling demand growth and the addition of new customers. A higher investment of $5 million in system expansion projects through 2025 compared to 2024 is resulting from spending on compression projects around the province including east Regina, Bayhurst and Unity. 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 capital investment over the last number of years. Risk management capital projects concentrate on mitigating the likelihood of a negative consequence occurring on the SaskEnergy system, such as damage or loss of gas containment. These consequences typically include damage to infrastructure, environment and potential harm to or loss of human life. Risk management spending of $17 million is

Management’s Discussion and Analysis

slightly higher in 2025 than the prior year as the Corporation continues its focus on cathodic protection, measurement and service replacement projects. Reliability of Natural Gas Service SaskEnergy’s network of transmission and distribution infrastructure requires regular monitoring and inspection, maintenance, upgrading and replacement to maintain service reliability for customers, avoid public safety incidents, and meet growing regulatory requirements. Recent years have also seen an increase in the cyber threat landscape and as a critical infrastructure operator, the Corporation has developed a robust Enterprise Security program that addresses both cyber and physical risks. This program requires continual improvement to mitigate risks and ensure secure systems for reliable operations. Reliability of natural gas in service includes enhancements, modifications or upgrades to facilities, ensuring that natural gas demand will be met without failure or loss of service. Reliability of natural gas service spending increased by $ 4 million in 2025, as the Corporation focuses investment on purchasing construction equipment, system improvement work on town border stations and network improvements. Business and Technology Optimization Business and technology optimization ensures that every investment in information technology, every resource allocated and every application in development or in production, meets the Corporation’s business goals. The 2025 year-to-date investment in business and technology optimization is $2 million higher than 2024 and focused on the work management system upgrade project, which centers on work management business processes, foundational core systems integrations, and execution of ongoing enhancements. Outlook Safe, reliable, and affordable energy is crucial for the prosperity of Saskatchewan’s people, businesses, and industries. Addressing the impacts of inflation while continuing to provide affordable energy is increasingly challenging. Upholding the integrity and reliability of our system, expanding to meet our customers’ growing needs, and enhancing customer service is essential for SaskEnergy’s present and future success. These goals are supported by both operational efforts as well as our substantial capital investment program. Expectations for natural gas demand growth in 2025-26 remain consistent with recent years reflecting a modest increase from the growing industrial and power generation sectors. Meanwhile, the number of new customers connecting to SaskEnergy’s distribution system is expected to remain similar to recent years at around 3,000 in 2025-26. As a result, overall distribution and transmission revenue growth is expected to be small, absent the effect of the transportation and storage rate changes from April 1, 2025. Overall, lower earnings are forecasted in 2025-26 than the prior year as asset optimization margins are expected to moderate due to changing market opportunities, and the modest revenue growth noted above is surpassed by increased operating costs. Affordability remains a top priority for SaskEnergy and its focus on operational excellence will look to offset that cost growth as much as possible.

Consolidated Financial Statements

Contents Condensed C onsolidated Statement of Financial Position Condensed Consolidated Statement of Income and Comprehensive Income Condensed Consolidated Statement of Changes in Equity Condensed Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements

Long-Term Debt Commitments Unrealized Market Value Adjustments Natural Gas Sales and Purchases Delivery Revenue Transportation and Storage Revenue Net Finance Expenses

General Information Basis of Preparation Material Accounting Policy Information Financial and Derivative Instruments Financial Risk Management Property, Plant and Equipment Lease Liability

2 4

Consolidated Financial Statements (unaudited)

Condensed Consolidated Statement of Financial Position

June 30, 2025

March 31, 2025

(millions)

Notes

ASSETS Current assets Cash and cash equivalents

Trade and other receivables

100

171

Natural gas in storage held for resale

22 20

Inventory of supplies

19 45

Current portion of debt retirement funds Fair value of derivative instruments

149

245

Right-of-use assets Intangible assets

16 44

Property, plant and equipment

3,400

3,377

Debt retirement funds

163

152

3,772

3,834

LIABILITIES AND PROVINCE'S EQUITY Current liabilities Short-term debt

217 123

187 192

Trade and other payables

Dividends payable Contract liability

16 59

Current portion of lease liability Current portion of provisions Current portion of long-term debt Fair value of derivative instruments

5 8

5 9

8 4

75 12

427

555

Employee future benefits

3 5 8

Deferred revenue

Lease liability

Provisions

157

165

Long-term debt

1,861 2,461

1,787 2,523

Province's equity Equity advances

Other components of equity

(6)

(5)

Retained earnings

1,295 1,311

1,294 1,311

3,772

3,834

The accompanying notes are an integral part of the condensed consolidated financial statements

Consolidated Financial Statements (unaudited)

Condensed Consolidated Statement of Comprehensive Income

For the Three Months Ended June 30, 2025

For the Three Months Ended June 30, 2024

Income (Loss) before Unrealized Market Value Adjust- ments

Income before Unrealized Market Value Adjust- ments

Unrealized Market Value Adjust- ments (Note 10)

Total

(millions)

Notes

REVENUE Natural gas sales

11 12 13

58 61 65 25

62 61 65 25

39 61 62

42 61 62

Delivery

- - -

Transportation and storage Customer capital contributions

209

213

165

168

EXPENSES Natural gas purchases (net of change in inventory)

47 33 57 35

57 33 57 35

32 32 49 34

39 32 49 34

Employee benefits

- - - -

Operating and maintenance Depreciation and amortization

Saskatchewan taxes

177

187

152

159

NET INCOME BEFORE THE FOLLOWING Net finance expenses

(6)

(4)

(20)

- -

(20)

(19)

- -

(19)

Other losses

(1)

TOTAL NET INCOME (LOSS)

(6)

(4)

(10)

ITEMS THAT MAY BE RECLASSIFIED TO NET INCOME Change in fair value of debt retirement funds designated as FVOCI (1)

(1) (7)

(1)

COMPREHENSIVE INCOME (LOSS)

(6)

(4)

(10)

The accompanying notes are an integral part of the condensed consolidated financial statements (1) Fair value through other comprehensive income (FVOCI)

Consolidated Financial Statements (unaudited)

Condensed Consolidated Statement of Changes in Equity

Other Components of Equity

Retained Earnings

Equity Advances

Total

(millions)

BALANCE, AT APRIL 1, 2024 Comprehensive income

1,235

(11)

1,246

- -

Dividends

(31)

BALANCE, AT MARCH 31, 2025

1,294

(5) (1)

1,311

Comprehensive income

- -

Dividends

(4)

BALANCE, AT JUNE 30, 2025

1,295

(6)

1,311

The accompanying notes are an integral part of the condensed consolidated financial statements

Consolidated Financial Statements (unaudited)

Condensed Consolidated Statement of Cash Flows

For the Three Months Ended June 30,

(millions)

Notes

2025

2024

OPERATING ACTIVITIES Net income (loss)

(10)

Add items not requiring an outlay of cash Net change in fair value of derivative instrument assets and liabilities Change in revaluation of natural gas in storage to net realizable value

10 10

3 1

Depreciation and amortization

35 20 66

34 19 47 32 79

Net finance expenses

Net change in non-cash working capital related to operations

(15)

Cash provided by operating activities

INVESTING ACTIVITIES Additions to intangible assets

(3)

(2)

Additions to property, plant and equipment

(63)

(32)

Decommissioning costs

(1)

(2)

Cash used in investing activities

(67)

(36)

FINANCING ACTIVITIES Debt retirement funds redemptions Debt retirement funds installments Net proceeds from short-term debt Net repayment of short-term debt

(11)

(10)

(70)

Proceeds from long-term debt Repayment of long-term debt

8 8 7

145

(75)

(100)

Repayment of principal on lease liability

(1)

Interest paid Dividends paid

(29) (16)

(29)

(6)

Cash provided by (used in) financing activities

(61)

DECREASE IN CASH AND CASH EQUIVALENTS

(18)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

CASH AND CASH EQUIVALENTS, END OF PERIOD

The accompanying notes are an integral part of the condensed consolidated financial statements

Notes to the Consolidated Financial Statements (unaudited)

General Information

SaskEnergy Incorporated (SaskEnergy or the Corporation) is a Saskatchewan provincially owned Crown corporation operating under authority of The SaskEnergy Act . The address of SaskEnergy’s registered office and principal place of business is 1777 Victoria Avenue, Regina, Saskatchewan, Canada S4P 4K5. The Corporation owns and operates natural gas-related businesses located both within and outside of Saskatchewan. The condensed consolidated financial statements should not be taken as indicative of the performance to be expected for the full year due to the seasonal nature of the natural gas utility business. By virtue of The Crown Corporations Act, 1993 , SaskEnergy has been designated as a subsidiary of Crown Investments Corporation of Saskatchewan (CIC), a Saskatchewan provincially owned Crown corporation. Accordingly, the financial results of SaskEnergy are included in the consolidated financial statements of CIC. As a provincial Crown corporation, SaskEnergy and its wholly owned subsidiaries are not subject to Federal or Provincial income taxes in Canada.

Basis of Preparation

Statement of compliance

The Corporation’s condensed consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting using accounting policies consistent with IFRS® Accounting Standards, as issued by the International Accounting Standards Board (IASB). The condensed consolidated financial statements do not include all of the information required for the Corporation’s annual consolidated financial statements. Accordingly, these statements should be read with reference to the annual report for the year ended March 31, 2025.

The accounting policies used in the preparation of these condensed consolidated financial statements conform with those used in the Corporation's most recent annual consolidated financial statements.

The condensed consolidated financial statements were authorized for issue by the Audit and Finance Committee of the Board of Directors on August 27, 2025.

Basis of measurement

The condensed consolidated financial statements include the accounts of the Corporation and its wholly owned subsidiaries with all significant transactions and balances being eliminated. The condensed consolidated financial statements have been prepared on the historical cost basis except for the following items, which are described in Note 3:

Financial instruments classified as at fair value through profit or loss Financial instruments classified as at fair value through other comprehensive income Employee future benefits Provisions Natural gas in storage held for resale

Functional and presentation currency

The condensed consolidated financial statements are presented in Canadian dollars, the Corporation’s functional currency, unless otherwise stated. All financial information presented in Canadian dollars has been rounded to the nearest million.

Use of estimates and judgments

In the application of the Corporation’s accounting policies, which are described in Note 3, management is required to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates.

Notes to the Consolidated Financial Statements (unaudited)

The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised as well as any future periods affected.

Information about critical judgments in applying accounting policies that have a material effect on the amounts recognized in the condensed consolidated financial statements include:

Revenue recognition related to unbilled revenue Existence of decommissioning liabilities Designation of own-use derivative contracts (Note 9)

Information about significant management estimates and assumptions that have a risk of resulting in a significant adjustment within the next financial period include:

Estimated unbilled revenue Expected credit losses

Net realizable value of natural gas in storage held for resale Fair value of financial and derivative instruments (Note 4) Useful lives and depreciation rates for right-of-use (ROU) assets Useful lives and amortization rates for intangible assets Useful lives and depreciation rates for property, plant and equipment (Note 6) Recoverable amount of non-financial assets (Note 6) Estimated lease liability (Note 7)

Estimated unearned customer capital contributions Estimated future cost of decommissioning liabilities

Material Accounting Policy Information

Accounting policies applied by the Corporation and its subsidiaries to the condensed consolidated financial statements are consistent with those applied to the consolidated financial statements prepared for the year ended March 31, 2025.

New standards, amendments and interpretations which are not yet effective for the period ended June 30, 2025, have not been applied in preparing these condensed consolidated financial statements. The Corporation is reviewing new and amended standards to determine the potential impact:  Amendments to IFRS 9, Financial Instruments and IFRS 7 Financial Instruments: Disclosures - These amendments clarify the classification and measurement of financial instruments, including those with environmental, social, and governance (ESG) features, and introduce additional disclosure requirements.  IFRS 18, Presentation and Disclosure in Financial Statements - IFRS 18 introduces new requirements for the presentation and disclosure of financial statements, including the introduction of new subtotals in the statement of profit or loss and enhanced principles for aggregation and disaggregation of items.

Financial and Derivative Instruments

For recurring and non-recurring fair value measurements, the Corporation estimates the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the reporting date under current market conditions. This requires the Corporation to make certain assumptions, including the principal (or most advantageous) market, the most appropriate valuation technique and the most appropriate valuation premise. The Corporation’s own credit risk and the credit risk of the counterparty are taken into account in determining the fair value of financial assets and liabilities, including derivative instruments.

In measuring fair value, the Corporation classifies items according to the fair value hierarchy based on the amount of observable inputs.

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