Ridgewood Energy V Fund Reports Q3 Loss

Despite stable operations, reduced production volumes and rising depletion expenses drove net losses in 2025.

November 05, 2025

Q3 Performance: Revenue and Production Decline

Ridgewood Energy V Fund saw a downturn in performance for Q3 2025, with net losses driven by lower production volumes and softer oil prices. Revenue took a hit, and while operations stayed consistent, key cost areas—like depletion and amortization—moved higher, putting pressure on results.

In the third quarter, total revenue came in at $380,000, down from $617,000 a year earlier. For the year to date, revenue dropped to $1.36 million from $1.98 million. The pullback was tied to both lower oil prices and declining production volumes across the Fund’s primary asset—the Beta Project. Two wells were temporarily shut in for pressure build during the third quarter, trimming output. Overall, fewer barrels and mcf sold meant less revenue, even with modest strength in gas pricing.

Cost Pressures and Cash Flow Impacts

Operating costs rose in line with updated asset retirement estimates. Depletion and amortization expenses reached $1.23 million through September, up from $764,000 the year before. Operating expenses—covering lease, insurance, and processing—came in at $394,000, slightly higher than the prior year, reflecting the cost of managing aging wells with declining output.

On the cash flow side, operations delivered $121,000 over nine months, down sharply from $1.6 million in 2024. The difference mostly came from a one-time $822,000 settlement tied to asset retirement work, which the Fund had budgeted for. With the Fund’s capital fully deployed, ongoing investment is now focused on existing commitments—primarily the Beta Project—rather than any new acquisitions.

Capital Commitments and Funding Strategy

Looking ahead, the Fund has $3.4 million in estimated capital obligations, including $2.1 million for asset retirement. About $1.6 million of that is expected to be spent over the next 12 months. Management believes its current reserves, along with cash on hand and operational income, will be enough to meet those needs.

Market Volatility and External Pressures

Broader market trends are also weighing on performance. Oil prices, which briefly spiked mid-year amid conflict in the Middle East, have since retreated. OPEC+ rolled back production cuts, while U.S. trade policy uncertainty and global political tensions continue to influence price movement. These shifts directly impact Ridgewood’s cash flow and planning.

Focused Execution Moving Forward

The Fund isn’t standing still. It’s staying focused on execution—managing its current wells, handling regulatory updates, and funding asset retirement through a designated salvage fund. Any future changes to BOEM or Interior Department regulations will be addressed once finalized, but for now, Ridgewood is building its position on a stable operational foundation.

While 2025 has delivered its share of headwinds, the Fund is aligning capital, operations, and expectations to stay responsive in a shifting energy landscape.