Evolution Petroleum Corp. (NYSE MKT:EPM) Q4 2020 Earnings Conference Call - Final Transcript
Sep 10, 2020 • 10:00 am ET
Jason E. Brown
cash return to shareholders as we have now paid out our 28th consecutive dividend and returned a total of $10.7 million in fiscal 2020 to common shareholders in the form of a quarterly cash dividend. This marks more than $70 million in cash dividend since the inception of the dividend program in December of 2013.
As previously reported, we recently went through our annual year-end reserves process, which was impacted by the lower price environment as we expected. Our reserves were once again evaluated and determined by DeGolyer & MacNaughton, an independent reserve engineering firm. For the year ended June 30th, 2020, Evolution's proved reserves, 100%, which are all oil and natural gas liquids, totaled 10.2 million barrels of oil equivalent, MMBOE.
With approximately 82% of that being PDP and the remaining 18% being PUD. That is a 13% increase from the previous year, including fiscal 2020 production of approximately 745,000 in BOE. This increase was primarily due to the strategic acquisition of Hamilton Dome field that we completed in November of 2019. Despite acquisition, we anticipated the reserve of Hamilton Dome to be a larger impact as previously stated, potentially closer to 30% of that. Responding oil -- lower oil prices in March, [Technical Issues] in Hamilton Dome [Technical Issues].
Although many of the wells have returned to production and as prices improves over the summer, as of June 30th, approximately 25% of the wells remain shut in. The lower historical production curve combined with a lower SEC average price resulted in the field reaching its economic limit sooner than it had when proved reserves were estimated at the time of acquisition. These shut-in wells will be brought back in -- brought back online as commodity prices increase, and so we look at these barrels more delayed rather than loss. We have been very impressed with Merit's operational team and their focus to optimize the field to be as economic as possible.
At Delhi, we have positive revisions in NGL volumes due to the change in methodology by D&M forecasting the NGL stream independently of the oil forecasts, as they are really a function of the constant recycled gas to the plant. In July of 2020, Denbury Resources, the operator of our interest at Delhi field announced that it had entered into a restructuring support agreement under Chapter 11 of the bankruptcy code in Texas. Denbury subsequently announced on September 3rd that its plans to eliminate $2.1 billion of its bond debt had been confirmed by the court. This will substantially reduce its debt, it will strengthen its balance sheet and free up capital for investment in properties such as Delhi. We are encouraged by our continued conversations with Denbury and believe the Delhi Phase 5 expansion will begin later in our fiscal 2021. We further expect resumption of historically beneficial conformance expenditures to improve the CO2 flood performance.
With that, I will now turn the call over to David to run through our financial highlights, and then I'll