Valuation Analysis of SaskEnergy

Policy Series, Valuation of Crown Corporations, Crown Corporations, Ian Madsen

This analysis arrives at approximations of the value of SaskEnergy, a provincial Crown corporation owned by the government and thus the citizens and taxpayers, of the province of Saskatchewan. These valuation ranges could be useful in determining the future ownership or use of this asset. Every organization needs to review what it could or should do to serve its clients as well as review whether its present array of assets is appropriate for its strategy and future operations.

The best probable estimate of the total market capitalization, that is, the total value of the company were it to be traded on a public stock exchange, is $0.818-billion to $1.241-billion, with the average of the three key metrics chosen being $1.164-billion. The calculation used to arrive at this range of figures was performed using comparison companies, the closest peers being two Canadian regional gas utility or distribution companies; however, other independent or energy-oriented Canadian firms with gas utility units and 11 regional (some multi-state) U.S. companies were also used. The U.S. companies often had electrical generation and sometimes regional or midstream pipeline units or other operations. No electricity- dominated U.S. companies were used in the analysis.

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