RIDGEWOOD ENERGY V FUND LLC Quarterly Report Released - Here’s What You Should Know

Ridgewood Energy V Fund, LLC
Quarter Ended June 30, 2025 – Investor Summary

Key Financial Metrics

• Total Assets (6/30/2025): $4.62 million (down from $5.16 million at 12/31/2024)
• Members' Capital (6/30/2025): $3.01 million (down from $3.48 million at 12/31/2024)
• Six-Month Revenues (ending 6/30/2025): $980,000 (prior year: $1,362,000)
  • Oil and gas revenue: $852,000 (down from $1,288,000)
  • Other revenue: $128,000 (up from $74,000)
• Six-Month Net (Loss) Income: $(154,000) (prior year: $550,000 net income)
• Three-Month Net (Loss) Income: $(293,000) (prior year quarter: $329,000 net income)
• Six-Month Operating Cash Flow: $249,000 (down from $1,131,000)
• Six-Month Distributions to Members: $315,000 (prior year: $777,000)
• Asset Retirement Obligation (6/30/2025): $1,510,000 (up from $1,586,000 at 12/31/2024 due to $482,000 in settlements and $356,000 upward revision)

Operating Metrics

• Number of producing wells: 7
• Oil produced (six months): 12,000 barrels (prior year: 16,000 barrels)
• Average oil price per barrel (six months): $68 (prior year: $78)
• Gas produced (six months): 18,000 mcfs (prior year: 21,000 mcfs)
• Average gas price per mcf (six months): $3.95 (prior year: $3.35)

Key Projects and Commitments

• Beta Project: 1.94% working interest, $19.6 million spent through June 30, 2025 (total budget: $22.7 million); project has 7 wells operating.

Risks

• Commodity Price Volatility: The Fund is exposed to significant oil and natural gas price volatility. For the six months ended June 30, 2025, the average oil price per barrel declined from $78 to $68, and gas prices increased only slightly. The management cites ongoing world events (e.g., war between Israel and Iran), OPEC policy decisions, and inflation-driven economic instability as ongoing risks.
• Declining Revenues and Production: Oil and gas revenues declined by $436,000 year-over-year, with oil production falling from 16,000 to 12,000 barrels and lower realized prices. This was directly cited as a main contributor to the operating and net loss for the period.
• Depletion and Asset Write-down Risk: Depletion and amortization expenses increased substantially, from $523,000 in 2024 to $766,000 in 2025 for the six-month period. Higher depletion further signals maturing assets and reduced reserve life.
• Regulatory & Environmental Compliance: The sector is subject to changing federal, state and local environmental regulations, with specific mention of increased assurance requirements from BOEM and BSEE. The Fund notes pending regulatory changes could raise compliance costs or operational limitations.
• Liquidity Constraints: Operating cash flow has dropped sharply year-over-year ($249,000 in 2025 vs. $1,131,000 in 2024) while distributions remain material, and capital commitments to oil and gas projects persist ($3.3 million outstanding). The ability to fund ongoing obligations from diminished cash flows is a source of concern.
• Asset Retirement Obligations: $1.5 million in asset retirement liabilities represents a significant financial obligation, with $482,000 paid out in the current year for settlements.

Management Discussion

• The Manager notes the significant impact of falling commodity prices since June 2025 and expects continued volatility due to economic, political, and supply-demand uncertainties. Despite a brief spike due to Middle East tensions, prices remain soft.
• Cost Structure: Total expenses increased from $868,000 to $1,181,000 (six months), driven by higher depletion, operating expenses ($271,000 vs. $219,000), and general/administrative costs ($144,000 vs. $126,000). Production costs remained broadly consistent, but with lower product volumes, overall profitability fell.
• Fund Liquidity: Short-term and long-term liquidity needs focus on operational/capital expenditures, asset retirement, and potential regulatory changes. Current cash ($1.42 million) and salvage fund ($1.14 million) are expected to cover near-term capital commitments, barring further revenue declines.
• No new impairments were recorded, but management is monitoring assets for recoverability.
• Related-party arrangements: Manager receives annual management fee and 15% of cash distributions. Beta Sales and Transport, LLC, an affiliate, is used for sales/transport.

Conclusion

Ridgewood Energy V Fund, LLC reported a net loss for the first half of 2025 largely due to lower oil and gas prices and volumes, despite stable operating costs. Declining revenues, increased depletion, and ongoing market volatility remain key headwinds. Liquidity is pressured by reduced operating cash flow and mandatory capital/retirement obligations. Regulatory risk is elevated amid potential changes from BOEM and BSEE. Investors should closely monitor commodity pricing trends, regulatory updates, and the Fund’s cash position relative to its commitments.

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