RIDGEWOOD ENERGY T FUND LLC Quarterly Report Released - Here’s What You Should Know

Ridgewood Energy T Fund, LLC
Investor Report – For the Quarter Ended June 30, 2025

Key Financial Metrics

• Total assets as of June 30, 2025: $4.0 million (down from $4.4 million at December 31, 2024).
• Cash and cash equivalents: $1.3 million (up from $1.0 million at year-end 2024).
• Total members' capital: $2.8 million (down from $3.1 million at year-end 2024).
• Oil and gas properties, net: $1.3 million (down from $1.7 million at year-end 2024).
• Revenue for Q2 2025: $393,000 (down 39% from $641,000 in Q2 2024).
• YTD revenue (six months): $831,000 (down 28% from $1.2 million in 2024).
• Net loss for Q2 2025: $(108,000) versus net income of $252,000 in Q2 2024.
• YTD net loss: $(6,000) versus net income of $432,000 in the six months ended June 30, 2024.
• Distributions to members in the first half of 2025: $265,000.
• Operating cash flow (six months): $347,000 (down from $944,000 in first half 2024).
• Investing cash flow (six months): $227,000 (versus $(65,000) in first half 2024).
• Outstanding shares: 971.6054

Operational Highlights

• Beta Project (Gulf of Mexico): 1.7% Fund working interest, $16.7 million spent through June 30, 2025, total project budget $19.4 million.
• Seven wells producing (same as prior period).
• Oil sales (Q2 2025): 5,000 barrels at an average $64/barrel (down from 7,000 barrels at $80/barrel in Q2 2024).
• Gas sales (Q2 2025): 7,000 mcf at $3.49/mcf (vs. 10,000 mcf at $3.07/mcf in Q2 2024).

Selected Expenses

• Total expenses (Q2 2025): $521,000 (up from $414,000 Q2 2024), primarily due to higher depletion/amortization.
• Operating expenses (Q2 2025): $113,000 (vs. $91,000 Q2 2024).
• Depletion and amortization (Q2 2025): $340,000 (up from $258,000 Q2 2024).
• General and administrative expenses YTD: $139,000 (up from $125,000 YTD 2024).

Risks

• Commodity Price Volatility: Oil prices, although briefly spiking in June 2025 due to the Israel-Iran conflict, continued to decline, impacting revenues. For example, the average oil price received was $64/barrel in Q2 2025, down from $80/barrel a year ago.
• Declining Production: Oil and gas revenues decreased substantially (41% for Q2, 34% YTD), alongside lower production volumes (oil sales at 5,000 barrels versus 7,000 a year earlier).
• Regulatory Exposure: The Fund is subject to changing federal, state, and local regulations, including recent and pending rules from the Bureau of Ocean Energy Management (BOEM) and Bureau of Safety and Environmental Enforcement (BSEE) regarding risk management and financial assurance.
• Asset Retirement Obligations: $1.15 million liability as of June 30, 2025 (up from $1.20 million at December 31, 2024), with $263,000 settled year-to-date, affecting available liquidity.
• Capital Commitments: Estimated $226,000 additional capital commitments for oil and gas properties as of June 30, 2025.
• Environmental and Operational Risks: Inherent in oil and natural gas operations, with customary but potentially limited insurance coverage.
• Concentration: All operations focused in the Gulf of Mexico/Beta Project; operational and geological setbacks or persistent low prices could have immediate financial impact.

Management Discussion

• The decline in revenues and operating cash flows was primarily due to lower commodity prices and decreased production volumes compared to prior periods.
• Despite market volatility and regulatory headwinds, the Fund reports it "expects cash on hand, the salvage fund, and asset reserves" will be sufficient for ongoing commitments.
• Operating and production costs have remained relatively stable year-over-year, with only minor increases in lease and insurance expenses.
• Distributions continue at a reduced pace; $265,000 distributed in the first half of 2025 versus $613,000 in first half 2024, reflecting lower cash flows.
• The Fund notes no impairments to oil and gas properties in the period, but remains exposed to ongoing market and regulatory uncertainty.

Conclusion

Ridgewood Energy T Fund, LLC faces challenging market conditions due to lower commodity prices and production volumes, resulting in reduced revenues, operating cash flow, and member distributions. The Fund retains sufficient liquidity for operations and near-term obligations, but remains exposed to volatility in commodity pricing, ongoing regulatory changes, and inherent risks tied to its concentrated Gulf of Mexico operations. Investors should closely monitor commodity trends and regulatory developments, as further declines could erode profitability and returns.

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