Ridgewood Energy T Fund Swings to Loss Amid Revenue Plunge

TL;DR

**Sell Ridgewood Energy T Fund; revenue is tanking and expenses are up, signaling a tough road ahead for distributions.**

AI Summary

Ridgewood Energy T Fund, LLC reported a significant decline in financial performance for the nine months ended September 30, 2025, with net loss reaching $110 thousand, a stark contrast to the net income of $621 thousand in the same period of 2024. Total revenue decreased by 31.3% to $1.153 million from $1.678 million year-over-year, primarily driven by a 35.9% drop in oil and gas revenue from $1.561 million to $1.000 million. Expenses, however, increased by 17.0% to $1.323 million from $1.131 million, largely due to higher depletion and amortization expenses of $800 thousand in 2025 compared to $672 thousand in 2024. The Fund's cash and cash equivalents increased to $1.391 million as of September 30, 2025, from $1.015 million at December 31, 2024, despite the net loss, primarily due to a substantial decrease in distributions to $342 thousand from $1.059 million. Total assets declined to $3.870 million from $4.363 million, while total liabilities slightly decreased to $1.234 million from $1.275 million. The Fund also saw a significant increase in asset retirement obligations settled, totaling $417 thousand for the nine months ended September 30, 2025, compared to $13 thousand in the prior year.

Why It Matters

This filing reveals a concerning downturn for Ridgewood Energy T Fund, LLC, with a substantial net loss and a significant drop in oil and gas revenue. For investors, this indicates potential challenges in the Fund's core operations and raises questions about future profitability and distribution sustainability, especially given the sharp reduction in distributions. Employees might face uncertainty if operational performance continues to decline, potentially impacting job security or future growth opportunities. Customers, primarily major oil and gas companies, may see this as a signal of reduced production capacity or operational efficiency, though the Fund's focus on a few investment-grade customers mitigates immediate credit risk. In the broader market, this performance reflects the volatility inherent in the energy sector and the impact of fluctuating commodity prices on smaller, specialized funds, potentially influencing investor sentiment towards similar energy-focused investment vehicles.

Risk Assessment

Risk Level: high — The Fund's net loss of $110 thousand for the nine months ended September 30, 2025, compared to a net income of $621 thousand in the prior year, coupled with a 35.9% decrease in oil and gas revenue, indicates significant operational and financial deterioration. The substantial settlement of asset retirement obligations at $417 thousand, up from $13 thousand, also represents a considerable cash outflow, further highlighting the high-risk profile.

Analyst Insight

Investors should consider divesting from Ridgewood Energy T Fund LLC given the sharp decline in revenue and net income, coupled with increasing expenses. The significant reduction in distributions suggests a challenging outlook for shareholder returns, making it prudent to re-evaluate this investment.

Financial Highlights

debt To Equity

0.47

revenue

$1,153,000

operating Margin

-14.7%

total Assets

$3,870,000

total Debt

$1,234,000

net Income

-$110,000

eps

-$0.212

gross Margin

N/A

cash Position

$1,391,000

revenue Growth

-31.3%

Revenue Breakdown

Key Numbers

• $110 thousand — Net Loss (For the nine months ended September 30, 2025, a significant decline from $621 thousand net income in 2024.)
• $1.000 million — Oil and Gas Revenue (For the nine months ended September 30, 2025, down 35.9% from $1.561 million in 2024.)
• $1.153 million — Total Revenue (For the nine months ended September 30, 2025, a 31.3% decrease from $1.678 million in 2024.)
• $1.323 million — Total Expenses (For the nine months ended September 30, 2025, an increase of 17.0% from $1.131 million in 2024.)
• $800 thousand — Depletion and Amortization (For the nine months ended September 30, 2025, up from $672 thousand in 2024.)
• $417 thousand — Settlement of Asset Retirement Obligations (For the nine months ended September 30, 2025, a substantial increase from $13 thousand in 2024.)
• $342 thousand — Distributions (For the nine months ended September 30, 2025, significantly lower than $1.059 million in 2024.)
• $1.391 million — Cash and Cash Equivalents (As of September 30, 2025, an increase from $1.015 million at December 31, 2024.)
• $3.870 million — Total Assets (As of September 30, 2025, a decrease from $4.363 million at December 31, 2024.)
• 971.6054 — LLC Membership Interest Shares (Outstanding as of November 4, 2025.)

Key Players & Entities

• Ridgewood Energy T Fund, LLC (company) — Registrant
• Ridgewood Energy Corporation (company) — Manager of the Fund
• Beta Sales and Transport, LLC (company) — Wholly-owned subsidiary of the Manager
• $110 thousand (dollar_amount) — Net loss for nine months ended September 30, 2025
• $621 thousand (dollar_amount) — Net income for nine months ended September 30, 2024
• $1.000 million (dollar_amount) — Oil and gas revenue for nine months ended September 30, 2025
• $1.561 million (dollar_amount) — Oil and gas revenue for nine months ended September 30, 2024
• $417 thousand (dollar_amount) — Liabilities settled for asset retirement obligations for nine months ended September 30, 2025
• $13 thousand (dollar_amount) — Liabilities settled for asset retirement obligations for nine months ended September 30, 2024
• September 30, 2025 (date) — End of current reporting period

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The Fund's financial performance is highly sensitive to fluctuations in oil and gas prices. A 35.9% drop in oil and gas revenue to $1,000,000 for the nine months ended September 30, 2025, compared to $1,561,000 in the prior year, highlights this risk.
• Asset Retirement Obligations [medium — operational]: The Fund experienced a substantial increase in asset retirement obligations settled, totaling $417,000 for the nine months ended September 30, 2025, up from $13,000 in the prior year. This indicates increasing costs associated with decommissioning assets.
• Declining Profitability [high — financial]: The Fund reported a net loss of $110,000 for the nine months ended September 30, 2025, a significant deterioration from a net income of $621,000 in the same period of 2024. This trend is concerning for future financial health.
• Increased Depletion and Amortization [medium — operational]: Depletion and amortization expenses rose by 19.1% to $800,000 for the nine months ended September 30, 2025, from $672,000 in the prior year. This increase, coupled with a decline in oil and gas properties' net value, suggests faster depletion of reserves or higher amortization charges.
• Rising Operating Expenses [medium — financial]: Total expenses increased by 17.0% to $1,323,000 for the nine months ended September 30, 2025, from $1,131,000 in the prior year. This rise, despite declining revenues, negatively impacts the Fund's bottom line.

Industry Context

The oil and gas exploration and production sector is characterized by high capital intensity, significant price volatility, and substantial regulatory oversight. Companies in this industry face ongoing challenges related to commodity price fluctuations, reserve depletion, and environmental compliance, including asset retirement obligations. Competition is fierce, with success often depending on efficient exploration, cost management, and access to capital.

Regulatory Implications

The significant increase in asset retirement obligations settled ($417,000) highlights the financial impact of environmental regulations. Companies must comply with regulations regarding the decommissioning of wells and facilities, which can lead to substantial future costs. Failure to comply can result in fines and operational disruptions.

What Investors Should Do

1. Monitor commodity price trends
2. Analyze expense management strategies
3. Evaluate the impact of asset retirement obligations
4. Assess the sustainability of cash position

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period marked by a net loss of $110,000 and a significant decline in oil and gas revenue.
• 2024-09-30: Nine months ended September 30, 2024 — Period reported a net income of $621,000 and higher oil and gas revenue.
• 2025-12-31: As of December 31, 2024 — Total assets were $4,363,000 and cash and cash equivalents were $1,015,000.
• 2025-09-30: As of September 30, 2025 — Total assets decreased to $3,870,000, while cash and cash equivalents increased to $1,391,000.

Glossary

Depletion and amortization

The accounting process of allocating the cost of natural resources (depletion) or intangible assets (amortization) over their useful lives. For oil and gas properties, it represents the extraction of reserves. (An increase in these expenses to $800,000 indicates a higher rate of resource extraction or a change in accounting estimates, impacting profitability.)

Asset retirement obligations

A legal obligation associated with the retirement of tangible long-lived assets, such as plugging and abandoning oil wells. (A significant increase in settled obligations ($417,000) suggests increased costs related to the closure and restoration of operational sites.)

Salvage fund

A fund set aside to cover costs associated with salvaging or dismantling assets, often related to oil and gas equipment. (The decrease in the salvage fund balance from $1,228,000 to $975,000, alongside increased ARO settlements, may indicate the use of these funds for current obligations.)

Production receivable

Money owed to the company for oil and gas produced and sold but not yet paid for by the purchasers. (A decrease in production receivable from $135,000 to $88,000 suggests lower sales volumes or faster customer payments.)

Year-Over-Year Comparison

Ridgewood Energy T Fund, LLC has experienced a significant downturn in financial performance compared to the prior year. Total revenue for the nine months ended September 30, 2025, fell by 31.3% to $1.153 million, primarily driven by a 35.9% decrease in oil and gas revenue. Concurrently, total expenses rose by 17.0% to $1.323 million, leading to a net loss of $110,000, a stark contrast to the $621,000 net income reported in the same period of 2024. The Fund's cash position improved due to a substantial reduction in distributions, but this masks the underlying operational challenges.

Filing Documents

• t101425510q.htm (10-Q) — 381KB
• ex31_1.htm (EX-31.1) — 10KB
• ex31_2.htm (EX-31.2) — 10KB
• ex32.htm (EX-32) — 8KB
• 0001214659-25-015882.txt ( ) — 1874KB
• cik0001364397-20250930.xsd (EX-101.SCH) — 20KB
• cik0001364397-20250930_cal.xml (EX-101.CAL) — 31KB
• cik0001364397-20250930_def.xml (EX-101.DEF) — 24KB
• cik0001364397-20250930_lab.xml (EX-101.LAB) — 146KB
• cik0001364397-20250930_pre.xml (EX-101.PRE) — 98KB
• t101425510q_htm.xml (XML) — 209KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 1 Unaudited Condensed Balance Sheets as of September 30, 2025 and December 31, 2024 1 Unaudited Condensed Statements of Operations for the three and nine months ended September 30, 2025 and 2024 2 Unaudited Condensed Statements of Changes in Members' Capital for the nine months ended September 30, 2025 and 2024 3 Unaudited Condensed Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 4 Notes to Unaudited Condensed Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 16 Item 4.

Controls and Procedures

Controls and Procedures 16

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 17 Item 1A.

Risk Factors

Risk Factors 17 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17 Item 3. Defaults Upon Senior Securities 17 Item 4. Mine Safety Disclosures 17 Item 5. Other Information 17 Item 6. Exhibits 18

SIGNATURES

SIGNATURES 19 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS RIDGEWOOD ENERGY T FUND, LLC UNAUDITED CONDENSED BALANCE SHEETS (in thousands, except share data) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 1,391 $ 1,015 Salvage fund 141 254 Production receivable 88 135 Due from affiliate (Note 2) 12 16 Other current assets 49 33 Total current assets 1,681 1,453 Salvage fund 975 1,228 Oil and gas properties: Proved properties 18,557 18,529 Less: accumulated depletion and amortization ( 17,343 ) ( 16,847 ) Total oil and gas properties, net 1,214 1,682 Total assets $ 3,870 $ 4,363 Liabilities and Members' Capital Current liabilities: Due to operators $ 28 $ 17 Accrued expenses 59 62 Asset retirement obligations 141 254 Total current liabilities 228 333 Asset retirement obligations 1,006 942 Total liabilities 1,234 1,275 Commitments and contingencies (Note 3) Members' capital: Manager: Distributions ( 9,934 ) ( 9,883 ) Retained earnings 9,700 9,604 Manager's total ( 234 ) ( 279 ) Shareholders: Capital contributions ( 1,000 shares authorized; 971.6054 issued and outstanding) 144,529 144,529 Syndication costs ( 16,990 ) ( 16,990 ) Distributions ( 58,804 ) ( 58,513 ) Accumulated deficit ( 65,865 ) ( 65,659 ) Shareholders' total 2,870 3,367 Total members' capital 2,636 3,088 Total liabilities and members' capital $ 3,870 $ 4,363 The accompanying notes are an integral part of these unaudited condensed financial statements. 1 Table of Contents RIDGEWOOD ENERGY T FUND, LLC UNAUDITED CONDENSED STATEMENTS OF OPERATIONS (in thousands, except per share data) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Revenue Oil and gas revenue $ 278 $ 469 $ 1,000 $ 1,561 Other revenue 44 54 153 117 Total revenue 322 523 1,153 1,678 Expenses Depletion and amortization 279

View Full Filing

View this 10-Q filing on SEC EDGAR