Ridgewood Energy X Fund Reports 2024 Financial Results

Oil and gas investment fund details production performance and market outlook in latest report.

February 27, 2025

Financial Performance and Distributions

Ridgewood Energy X Fund, LLC has released its 2024 annual report, outlining financial performance, project developments, and market conditions affecting its investments in the Gulf of Mexico. While production remained steady, the fund faced operational challenges and market shifts that shaped its performance over the past year.

The fund generated $3.3 million in oil and gas revenue, slightly lower than the previous year’s $3.6 million. The decline was due to well maintenance issues, including a shut-in at the Marmalard Project and the cessation of production at the Diller Project.

Despite these challenges, the fund remained profitable, reporting $1.3 million in net income, down from $2.0 million in 2023. The decrease came from lower sales volumes and a slight dip in commodity prices. The fund also saw a rise in depletion and amortization expenses, up from $349,000 to $722,000, due to adjustments in reserve estimates.

Total expenses stood at $2.3 million, covering operating costs, management fees, and administrative expenses. Management fees to Ridgewood Energy Corporation, which oversees the fund’s operations, remained at $0.7 million.

Shareholders received $2.2 million in distributions, a reduction from $2.8 million in 2023. The lower payout reflected capital needs for upcoming project expenses and asset retirement obligations.

Operational Updates and Project Developments

The fund holds working interests in oil and gas projects across the Gulf of Mexico, including key stakes in the Diller and Marmalard projects. In 2024, five wells remained in production, though mechanical issues and maintenance work affected output.

Marmalard Project

Four wells continued producing, but one well was shut-in for most of the year.

Another well that started producing in January 2024 later went offline due to a mechanical failure.

A sidetrack operation is scheduled to begin in early 2025, with production expected to resume in April.

The fund expects to allocate $1.0 million to further development and $1.1 million toward asset retirement obligations.

Diller Project

Production began in 2015, but one well that had been offline since April 2023 did not return to operation.

The project operator filed a cessation of production notice.

The fund anticipates $0.5 million in asset retirement costs related to decommissioning.

Across its portfolio, the fund holds 17,280 gross acres in developed oil and gas properties. With capital fully invested, no new projects are planned, and the focus remains on managing existing assets.

Market Conditions and Commodity Price Volatility

Oil markets saw some stability in early 2024, but prices softened in the second half of the year. Several global factors influenced pricing, including:

Potential U.S. tariffs on Mexico and Canada.

Shifting U.S. policy on Iran.

Continued conflict in Ukraine.

Economic shifts tied to U.S.-China relations.

The fund’s oil sold at an average of $76 per barrel, down slightly from $77 per barrel in 2023. Natural gas prices also declined, averaging $2.82 per thousand cubic feet, compared to $2.86 the previous year. The fund expects price fluctuations to continue shaping future revenue and investment decisions.

Regulatory and Environmental Considerations

Regulatory changes added another layer of complexity in 2024. The Bureau of Ocean Energy Management (BOEM) revised financial assurance requirements, increasing bonding and decommissioning obligations for offshore operators. The fund has updated its asset retirement estimates accordingly and will continue assessing the impact.

A recent court ruling also vacated the National Marine Fisheries Service’s 2020 Biological Opinion on oil and gas activities in the Gulf of Mexico, raising uncertainty about federal permitting. The fund is monitoring legal developments and evaluating potential effects on operations.

Liquidity and Capital Planning

As of December 31, 2024, the fund held $11.1 million in total assets, including:

$6.7 million in cash.

$1.4 million in a salvage fund set aside for future decommissioning costs.

With capital fully invested, new project spending is off the table. Instead, the fund is allocating resources toward maintaining and optimizing existing assets. Estimated capital commitments for 2025 total $2.8 million, with only $21,000 expected to be spent in the near term. Liquidity remains strong, with cash flow from operations expected to cover obligations.

Looking Ahead

The fund enters 2025 facing familiar challenges: commodity price fluctuations, regulatory shifts, and ongoing well maintenance. While the fund remains positioned to sustain cash flow, operational hurdles will require careful management. The focus remains on maintaining existing assets, adapting to regulatory changes, and managing capital efficiently to ensure continued performance.