Ridgewood Energy A-1 Fund Sees Stable Cash

While net income fell year-over-year, strong liquidity and disciplined capital management continue to underpin operations.

May 06, 2025

Production trends and revenue shifts

Ridgewood Energy A-1 Fund is holding its ground in a changing market. For the first quarter of 2025, the Fund reported $68,000 in net income —down from $139,000 in the same period last year—driven largely by lower oil volumes from maturing wells. Even so, Ridgewood continues to meet its obligations, supported by steady cash flow, controlled spending, and a focused project pipeline.

Revenue for the quarter came in at $436,000, down from $512,000 a year earlier. Oil revenue dropped to $381,000 from $493,000, tied to natural declines in output. Oil averaged $72 per barrel in Q1 2025, slightly lower than the $75 average in Q1 2024. Gas revenue helped cushion the drop, with prices moving up to $4.52 per mcf compared to $3.82 the year before. Volumes stayed flat at 8,000 mcf.

Other revenue—mostly tied to production services provided to third parties and affiliates—rose from $19,000 to $55,000. That increase supported Ridgewood’s overall top-line performance even as commodity prices fluctuated.

Cost discipline and liquidity strength

Expenses held steady at $390,000. Key items included:

• $172,000 in depletion and amortization


• $97,000 in direct operating costs


• $72,000 in management fees

Interest income added another $22,000, bringing total net income to $68,000.

Operating cash flow reached $280,000, slightly down from $452,000 the year before. Still, Ridgewood’s liquidity position remained strong. As of March 31, the Fund had $497,000 in cash and another $1.99 million in its salvage fund —resources earmarked for decommissioning.

Focused capital deployment

Ridgewood’s investment activity remains centered on the Beta Project, where it holds a 1.64% working interest. Seven wells are active, and the Fund plans to spend $2.7 million over time:

• $1.2 million on development


• $1.5 million on asset retirement obligations

These outlays will be covered through cash on hand and operating income. No new project commitments are planned.

Regulatory watch and leadership update

The Fund is closely monitoring developments tied to offshore financial assurance rules and environmental consultations under the Endangered Species Act. BOEM’s bonding requirements are currently paused under a February executive order, but legal challenges and future rule changes remain in play. Ridgewood has already increased its estimated retirement obligations in response and will continue to adjust as needed.

Effective April 30, Ridgewood named Niloy Shah as President and executive officer. He steps into the role after serving as COO and brings more than three decades of industry experience, including leadership roles at BP. Kathleen McSherry has stepped down as CEO but remains in her role as CFO.

Looking ahead

Ridgewood’s strategy is clear: manage existing assets, meet obligations, and maintain cash flow. While volatility in commodity prices and regulatory direction continues to shape the landscape, the Fund’s measured approach and strong liquidity position it to respond with confidence.