Ridgewood Energy V Fund Swings to Loss Amid Revenue Drop

TL;DR

**Ridgewood Energy V Fund is bleeding cash, and investors should be wary of its rapidly declining asset base and profitability.**

AI Summary

Ridgewood Energy V Fund, LLC reported a significant decline in financial performance for the nine months ended September 30, 2025, with total revenue decreasing by 31.2% to $1.36 million from $1.979 million in the prior year. The company swung to a net loss of $412 thousand for the nine-month period, a stark contrast to the net income of $781 thousand reported for the same period in 2024. This downturn was primarily driven by a substantial increase in depletion and amortization expenses, which rose by 61.1% to $1.231 million from $764 thousand, and a 40.5% increase in operating expenses to $394 thousand. Oil and gas revenue, the primary source, fell by 35.9% to $1.18 million from $1.842 million. Total assets decreased by 17.4% to $4.265 million as of September 30, 2025, from $5.161 million at December 31, 2024, largely due to a reduction in net oil and gas properties and salvage funds. Members' capital also saw a considerable reduction, falling by 23.3% to $2.668 million from $3.478 million. The company also settled $822 thousand in asset retirement obligations during the nine months ended September 30, 2025.

Why It Matters

This filing reveals a concerning financial deterioration for Ridgewood Energy V Fund, LLC, impacting investors through significant net losses and reduced members' capital. The substantial decline in oil and gas revenue, coupled with rising operating and depletion costs, suggests potential operational inefficiencies or a challenging market for their Gulf of America properties. For employees, continued losses could signal future instability. Customers might see impacts on service if financial pressures lead to operational cutbacks. Competitively, this performance indicates Ridgewood Energy V Fund is struggling to maintain profitability in the oil and gas sector, potentially losing ground to more efficient or better-capitalized rivals.

Risk Assessment

Risk Level: high — The company reported a net loss of $412 thousand for the nine months ended September 30, 2025, a significant reversal from a $781 thousand net income in the prior year. Total assets decreased by 17.4% from $5.161 million to $4.265 million, and members' capital declined by 23.3% from $3.478 million to $2.668 million, indicating a deteriorating financial position and increased risk for investors.

Analyst Insight

Investors should consider divesting from Ridgewood Energy V Fund, LLC given the sharp decline in revenue, significant net losses, and reduction in members' capital. The increase in depletion and operating expenses, coupled with falling oil and gas revenue, suggests fundamental operational challenges that are unlikely to reverse quickly.

Financial Highlights

debt To Equity

0.60

revenue

$1,360,000

operating Margin

-35.5%

total Assets

$4,265,000

total Debt

$1,597,000

net Income

$(412,000)

eps

$(1,020)

gross Margin

N/A

cash Position

$1,472,000

revenue Growth

-31.2%

Revenue Breakdown

Key Numbers

• $1.36M — Total Revenue (Decreased by 31.2% for the nine months ended September 30, 2025, from $1.979 million in 2024.)
• $(412K) — Net Loss (Swung from a net income of $781 thousand in 2024 to a net loss for the nine months ended September 30, 2025.)
• $1.231M — Depletion and Amortization (Increased by 61.1% for the nine months ended September 30, 2025, from $764 thousand in 2024.)
• $4.265M — Total Assets (Decreased by 17.4% as of September 30, 2025, from $5.161 million at December 31, 2024.)
• $2.668M — Total Members' Capital (Decreased by 23.3% as of September 30, 2025, from $3.478 million at December 31, 2024.)
• $1.18M — Oil and Gas Revenue (Decreased by 35.9% for the nine months ended September 30, 2025, from $1.842 million in 2024.)
• $394K — Operating Expenses (Increased by 40.5% for the nine months ended September 30, 2025, from $331 thousand in 2024.)
• $822K — Asset Retirement Obligations Settled (Significant settlement during the nine months ended September 30, 2025, compared to $25 thousand in 2024.)

Key Players & Entities

• RIDGEWOOD ENERGY V FUND LLC (company) — registrant
• Ridgewood Energy Corporation (company) — Manager of the Fund
• Beta Sales and Transport, LLC (company) — wholly-owned subsidiary of the Manager
• SEC (regulator) — Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• $1.36 million (dollar_amount) — total revenue for nine months ended September 30, 2025
• $412 thousand (dollar_amount) — net loss for nine months ended September 30, 2025
• $1.231 million (dollar_amount) — depletion and amortization expense for nine months ended September 30, 2025
• $4.265 million (dollar_amount) — total assets as of September 30, 2025
• $2.668 million (dollar_amount) — total members' capital as of September 30, 2025

FAQ

Risk Factors

• Deteriorating Financial Performance [high — financial]: The company experienced a significant downturn in financial performance for the nine months ended September 30, 2025, with total revenue falling 31.2% to $1.36 million and swinging to a net loss of $412 thousand from a net income of $781 thousand in the prior year. This was driven by a 61.1% increase in depletion and amortization expenses to $1.231 million and a 40.5% rise in operating expenses.
• Increased Depletion and Amortization Expenses [high — operational]: Depletion and amortization expenses surged by 61.1% to $1.231 million for the nine months ended September 30, 2025, from $764 thousand in the prior year. This substantial increase significantly impacted profitability and contributed to the net loss.
• Declining Asset Base and Members' Capital [medium — financial]: Total assets decreased by 17.4% to $4.265 million as of September 30, 2025, from $5.161 million at year-end 2024, primarily due to reductions in net oil and gas properties and salvage funds. Members' capital also fell by 23.3% to $2.668 million, indicating a shrinking equity base.
• Rising Operating Expenses [medium — operational]: Operating expenses increased by 40.5% to $394 thousand for the nine months ended September 30, 2025, compared to $331 thousand in the same period of 2024. This rise in operational costs further pressured the company's bottom line.
• Settlement of Asset Retirement Obligations [medium — financial]: The company settled $822 thousand in asset retirement obligations during the nine months ended September 30, 2025. While this reduces future liabilities, it represents a significant cash outflow during a period of declining revenue and profitability.

Industry Context

The oil and gas industry is subject to volatile commodity prices, regulatory changes, and significant capital expenditure requirements. Companies like Ridgewood Energy V Fund, LLC often operate in a capital-intensive environment where production levels and operating costs directly influence financial performance. The current market conditions may be characterized by fluctuating demand and supply dynamics, impacting revenue streams.

Regulatory Implications

Companies in the oil and gas sector face stringent environmental regulations, including those related to asset retirement obligations. Compliance with these regulations requires significant financial planning and execution, as demonstrated by Ridgewood Energy V Fund, LLC's settlement of these obligations. Changes in environmental policies or enforcement can lead to increased costs and operational complexities.

What Investors Should Do

1. Monitor revenue trends and cost management
2. Analyze the drivers of increased depletion and amortization
3. Assess the impact of asset retirement obligation settlements
4. Evaluate the decline in total assets and members' capital

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period of significant financial decline, marked by reduced revenue, increased expenses, and a swing to net loss.
• 2024-09-30: Nine months ended September 30, 2024 — Prior year period showing stronger financial performance with higher revenue and net income.
• 2025-12-31: As of December 31, 2024 — Balance sheet date for comparison, showing higher total assets and members' capital than at September 30, 2025.

Glossary

Depletion and amortization

The process of allocating the cost of natural resources (like oil and gas) or intangible assets over their useful lives. For oil and gas, depletion refers to the extraction of the resource. (A significant expense for Ridgewood Energy V Fund, LLC, which saw a substantial increase, negatively impacting profitability.)

Asset retirement obligations

A legal obligation to retire an asset at the end of its useful life, such as plugging an oil well. The cost is recognized when the obligation is incurred. (Ridgewood Energy V Fund, LLC settled a significant amount of these obligations during the period, impacting cash flow.)

Salvage fund

Funds set aside for the eventual dismantling or restoration of assets, often related to environmental or decommissioning costs. (The balance of the salvage fund decreased, contributing to the overall reduction in total assets.)

Members' capital

The total equity investment made by the members (owners) of a limited liability company. (Showed a considerable decrease, indicating a reduction in the owners' stake in the company.)

Year-Over-Year Comparison

Ridgewood Energy V Fund, LLC has experienced a significant deterioration in its financial performance compared to the prior year. Total revenue for the nine months ended September 30, 2025, fell by 31.2% to $1.36 million, and the company swung from a net income of $781 thousand to a net loss of $412 thousand. This downturn is primarily attributed to a substantial 61.1% increase in depletion and amortization expenses and a 40.5% rise in operating expenses. Total assets and members' capital have also decreased, indicating a shrinking financial base.

Filing Documents

• v101425710q.htm (10-Q) — 384KB
• ex31_1.htm (EX-31.1) — 9KB
• ex31_2.htm (EX-31.2) — 9KB
• ex32.htm (EX-32) — 8KB
• 0001214659-25-015884.txt ( ) — 1894KB
• cik0001385662-20250930.xsd (EX-101.SCH) — 20KB
• cik0001385662-20250930_cal.xml (EX-101.CAL) — 32KB
• cik0001385662-20250930_def.xml (EX-101.DEF) — 24KB
• cik0001385662-20250930_lab.xml (EX-101.LAB) — 151KB
• cik0001385662-20250930_pre.xml (EX-101.PRE) — 100KB
• v101425710q_htm.xml (XML) — 205KB

- 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 V FUND, LLC UNAUDITED CONDENSED BALANCE SHEETS (in thousands, except share data) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 1,472 $ 1,079 Salvage fund 310 482 Production receivable 105 160 Due from affiliate (Note 2) 14 18 Other current assets 64 43 Total current assets 1,965 1,782 Salvage fund 893 1,424 Oil and gas properties: Proved properties 21,601 21,568 Less: accumulated depletion and amortization ( 20,194 ) ( 19,613 ) Total oil and gas properties, net 1,407 1,955 Total assets $ 4,265 $ 5,161 Liabilities and Members' Capital Current liabilities: Due to operators $ 33 $ 20 Accrued expenses 58 60 Asset retirement obligations 310 482 Total current liabilities 401 562 Due to operators 17 17 Asset retirement obligations 1,179 1,104 Total liabilities 1,597 1,683 Commitments and contingencies (Note 3) Members' capital: Manager: Distributions ( 8,781 ) ( 8,721 ) Retained earnings 10,678 10,567 Manager's total 1,897 1,846 Shareholders: Capital contributions ( 850 shares authorized; 513.1226 issued and outstanding) 76,006 76,006 Syndication costs ( 8,675 ) ( 8,675 ) Distributions ( 49,756 ) ( 49,418 ) Accumulated deficit ( 16,804 ) ( 16,281 ) Shareholders' total 771 1,632 Total members' capital 2,668 3,478 Total liabilities and members' capital $ 4,265 $ 5,161 The accompanying notes are an integral part of these unaudited condensed financial statements. 1 Table of Contents RIDGEWOOD ENERGY V 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 $ 328 $ 554 $ 1,180 $ 1,842 Other revenue 52 63 180 137 Total revenue 380 617 1,360 1,979 Expenses Depletion a

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View this 10-Q filing on SEC EDGAR