Ridgewood Energy X Fund's Net Income Plummets 73% Amid Revenue Decline
| Field | Detail |
|---|---|
| Company | Ridgewood Energy X Fund, LLC |
| Form Type | 10-Q |
| Filed Date | Nov 4, 2025 |
| Risk Level | high |
| Pages | 15 |
| Reading Time | 18 min |
| Sentiment | bearish |
Sentiment: bearish
Topics: Oil & Gas, Energy Sector, Financial Performance, Revenue Decline, Net Loss, Operating Expenses, Cash Flow
TL;DR
**Ridgewood Energy X Fund is bleeding cash and revenue, signaling a tough road ahead for investors.**
AI Summary
Ridgewood Energy X Fund, LLC reported a significant decline in net income for the nine months ended September 30, 2025, falling to $311 thousand from $1,169 thousand in the prior year, representing a 73.4% decrease. Oil and gas revenue also decreased substantially, from $2,581 thousand in the nine months ended September 30, 2024, to $1,933 thousand in the same period of 2025, a 25.1% reduction. The company experienced a net loss of $101 thousand for the three months ended September 30, 2025, compared to a net income of $354 thousand in the corresponding 2024 quarter. Operating expenses increased to $678 thousand for the nine months ended September 30, 2025, up from $538 thousand in 2024. Cash and cash equivalents decreased from $6,728 thousand at December 31, 2024, to $5,701 thousand at September 30, 2025. The Fund received $0.5 million in insurance proceeds related to a sidetrack operation on the Marmalard well #5, which was necessary due to a downhole mechanical failure. Total assets declined from $11,131 thousand at December 31, 2024, to $10,720 thousand at September 30, 2025.
Why It Matters
This significant drop in net income and revenue for Ridgewood Energy X Fund, LLC signals potential operational challenges and lower returns for investors. The increase in operating expenses and the net loss in the most recent quarter could indicate a deteriorating financial position, impacting future distributions to shareholders. In a competitive energy market, declining production and revenue, even with insurance recoveries, suggest the company may struggle to maintain its market share and profitability. Employees might face uncertainty if the trend continues, and the broader market could see this as a cautionary tale for smaller, specialized energy funds.
Risk Assessment
Risk Level: high — The Fund reported a net loss of $101 thousand for the three months ended September 30, 2025, a sharp decline from a $354 thousand net income in the prior year. Furthermore, net cash provided by operating activities significantly decreased from $1,633 thousand in the nine months ended September 30, 2024, to $674 thousand in the same period of 2025, indicating reduced operational efficiency and cash generation.
Analyst Insight
Investors should exercise extreme caution and consider divesting from Ridgewood Energy X Fund, LLC given the substantial decline in net income, revenue, and operating cash flow. The negative net income in the latest quarter and the overall downward trend suggest fundamental issues that may not be easily resolved, making it a high-risk investment.
Financial Highlights
- debt To Equity
- N/A
- revenue
- $1,933K
- operating Margin
- N/A
- total Assets
- $10,720K
- total Debt
- N/A
- net Income
- $311K
- eps
- $450
- gross Margin
- N/A
- cash Position
- $5,701K
- revenue Growth
- -25.1%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Oil and gas revenue | $1,933K | -25.1% |
Key Numbers
- $311K — Net Income (Down 73.4% from $1,169K in 9M 2024 to $311K in 9M 2025)
- $1.93M — Oil and Gas Revenue (Decreased 25.1% from $2.58M in 9M 2024 to $1.93M in 9M 2025)
- ($101K) — Net Loss (For the three months ended September 30, 2025, compared to $354K net income in 2024)
- $678K — Operating Expenses (Increased from $538K in 9M 2024 to $678K in 9M 2025)
- $5.70M — Cash and Cash Equivalents (Decreased from $6.73M at Dec 31, 2024, to $5.70M at Sep 30, 2025)
- $0.5M — Insurance Recovery (Received for Marmalard well #5 sidetrack operation)
- $10.72M — Total Assets (Declined from $11.13M at Dec 31, 2024, to $10.72M at Sep 30, 2025)
- $674K — Net Cash from Operating Activities (Decreased from $1,633K in 9M 2024 to $674K in 9M 2025)
- $778K — Distributions (Net cash used in financing activities for 9M 2025, down from $1,799K in 9M 2024)
- 477.8874 — LLC Membership Interest Shares (Outstanding as of November 4, 2025)
Key Players & Entities
- RIDGEWOOD ENERGY X FUND, LLC (company) — registrant
- Ridgewood Energy Corporation (company) — Manager of the Fund
- Murphy Exploration & Production Company - USA (company) — operator of Delta House floating production system
- DH Sales and Transport, LLC (company) — wholly-owned subsidiary of the Manager
- SEC (regulator) — Securities and Exchange Commission
- $1,169 thousand (dollar_amount) — net income for nine months ended September 30, 2024
- $311 thousand (dollar_amount) — net income for nine months ended September 30, 2025
- $2,581 thousand (dollar_amount) — oil and gas revenue for nine months ended September 30, 2024
- $1,933 thousand (dollar_amount) — oil and gas revenue for nine months ended September 30, 2025
- $101 thousand (dollar_amount) — net loss for three months ended September 30, 2025
FAQ
What caused the significant decline in Ridgewood Energy X Fund's net income?
Ridgewood Energy X Fund's net income declined primarily due to a 25.1% decrease in oil and gas revenue, from $2,581 thousand in the nine months ended September 30, 2024, to $1,933 thousand in the same period of 2025, coupled with an increase in operating expenses from $538 thousand to $678 thousand.
How did Ridgewood Energy X Fund's cash position change in the last nine months?
Ridgewood Energy X Fund's cash and cash equivalents decreased by $1,027 thousand, from $6,728 thousand at the beginning of the period to $5,701 thousand as of September 30, 2025. This was driven by net cash used in investing activities of $923 thousand and financing activities of $778 thousand.
What is the strategic outlook for Ridgewood Energy X Fund given the recent performance?
The strategic outlook appears challenging for Ridgewood Energy X Fund, with declining revenue and a net loss in the most recent quarter. While they received $0.5 million in insurance recovery for a well sidetrack, the overall trend suggests a need for significant operational improvements or strategic shifts to reverse the negative financial trajectory.
Are there any specific risks highlighted in the Ridgewood Energy X Fund 10-Q filing?
The filing indicates risks related to fluctuations in oil and natural gas commodity prices, which could impact the fair value of the Fund's oil and gas properties and potentially lead to impairment. Additionally, future results are dependent on revenues from production and sale of oil and natural gas from their producing projects.
What are the implications of the increased operating expenses for Ridgewood Energy X Fund?
The increase in operating expenses from $538 thousand in the nine months ended September 30, 2024, to $678 thousand in the same period of 2025, suggests higher costs associated with running the Fund's operations. This directly contributes to the reduced profitability and net income, putting pressure on the Fund's financial health.
How does the Manager's compensation structure affect Ridgewood Energy X Fund's financials?
The Manager receives an annual management fee of 2.5% of total capital contributions and 15% of cash distributions from operations. For the nine months ended September 30, 2025, management fees were $0.5 million and distributions to the Manager were $0.1 million, impacting the Fund's overall profitability and cash available for shareholders.
What is the status of Ridgewood Energy X Fund's asset retirement obligations?
Ridgewood Energy X Fund's asset retirement obligations increased from $961 thousand at December 31, 2024, to $973 thousand at September 30, 2025. The Fund settled $121 thousand in liabilities during the nine months ended September 30, 2025, but accretion expense and revision of estimates added $50 thousand and $83 thousand, respectively.
What is the significance of the insurance receivable for Ridgewood Energy X Fund?
The insurance receivable of $587 thousand as of September 30, 2025, relates to a claim on Marmalard well #5's sidetrack operation, which was needed to resume production after a mechanical failure. The Fund received $0.5 million in proceeds during the nine months ended September 30, 2025, which helped offset some cash outflows from investing activities.
How many shares of LLC Membership Interest are outstanding for Ridgewood Energy X Fund?
As of November 4, 2025, there were 477.8874 shares of LLC Membership Interest outstanding for Ridgewood Energy X Fund, LLC. This number has remained consistent throughout the reported periods.
Has Ridgewood Energy X Fund experienced any impairment of long-lived assets recently?
No, Ridgewood Energy X Fund reported no impairments of oil and gas properties during each of the three and nine months ended September 30, 2025, and 2024. However, the filing notes that fluctuations in commodity prices could impact fair value and potentially lead to future impairments.
Risk Factors
- Downhole Mechanical Failures [medium — operational]: The Marmalard well #5 experienced a downhole mechanical failure requiring a sidetrack operation, resulting in a $0.5 million insurance recovery. Such failures can lead to significant operational disruptions and costs.
- Declining Net Income and Cash [high — financial]: Net income for the nine months ended September 30, 2025, fell 73.4% to $311K from $1,169K in the prior year. Cash and cash equivalents decreased from $6,728K at year-end 2024 to $5,701K as of September 30, 2025.
- Oil and Gas Revenue Decline [medium — market]: Oil and gas revenue decreased by 25.1% to $1,933K for the nine months ended September 30, 2025, compared to $2,581K in the same period of 2024, indicating potential challenges in production or pricing.
- Increased Operating Expenses [medium — operational]: Operating expenses rose to $678K for the nine months ended September 30, 2025, from $538K in the prior year, impacting profitability. This increase may be related to the sidetrack operation or other operational costs.
- Negative Quarterly Net Income [medium — financial]: The Fund reported a net loss of $101K for the three months ended September 30, 2025, a reversal from a net income of $354K in the corresponding quarter of 2024.
- Decreasing Total Assets [low — financial]: Total assets declined from $11,131K at December 31, 2024, to $10,720K at September 30, 2025, suggesting a potential reduction in the Fund's asset base.
Industry Context
The oil and gas exploration and production sector is subject to volatile commodity prices, regulatory changes, and operational risks. Companies like Ridgewood Energy X Fund, LLC face challenges in managing production costs, reserve depletion, and environmental liabilities. The current market environment may be characterized by fluctuating demand and supply dynamics, impacting revenue and profitability.
Regulatory Implications
Companies in the oil and gas industry must comply with stringent environmental regulations regarding exploration, production, and site abandonment. Changes in tax laws or environmental policies can significantly impact operational costs and investment decisions. Asset retirement obligations, as noted in the financial statements, highlight the long-term financial commitments related to regulatory compliance.
What Investors Should Do
- Monitor operating expense trends
- Analyze revenue drivers
- Assess cash flow sustainability
- Review asset retirement obligations
Key Dates
- 2025-09-30: Nine months ended September 30, 2025 — Period reflects a significant decline in net income and oil and gas revenue compared to the prior year.
- 2025-09-30: Three months ended September 30, 2025 — Period shows a net loss, contrasting with a net income in the same quarter of the previous year.
- 2024-12-31: As of December 31, 2024 — Starting point for comparison of cash and cash equivalents and total assets.
- 2025-11-04: LLC Membership Interest Shares Outstanding — Provides the current share count for potential per-share calculations or ownership analysis.
Glossary
- Depletion and amortization
- The accounting process of allocating the cost of natural resources (like oil and gas) or intangible assets over their useful lives. (Represents the expensing of the value of extracted oil and gas reserves or the cost of intangible assets.)
- Salvage fund
- Funds set aside for the eventual decommissioning or restoration of oil and gas properties. (Indicates a provision for future environmental or site remediation costs.)
- Asset retirement obligations
- The costs associated with the retirement of tangible long-lived assets, such as plugging and abandoning wells. (Represents future liabilities related to the end-of-life of oil and gas assets.)
- Sidetrack operation
- A drilling operation that deviates from the original wellbore to bypass a problem or reach a different reservoir section. (Explains the reason for the insurance recovery and potential operational challenges.)
- Downhole mechanical failure
- A malfunction or breakdown of equipment or components within the wellbore. (The specific cause of the operational issue on Marmalard well #5.)
Year-Over-Year Comparison
Ridgewood Energy X Fund, LLC has experienced a significant downturn compared to the prior year. For the nine months ended September 30, 2025, net income plummeted by 73.4% to $311K from $1,169K, while oil and gas revenue decreased by 25.1% to $1,933K. Operating expenses saw an increase of 25.8% to $678K. The Fund also shifted from a net income of $354K in the third quarter of 2024 to a net loss of $101K in the third quarter of 2025, indicating a worsening operational and financial performance.
Filing Stats: 4,609 words · 18 min read · ~15 pages · Grade level 16.5 · Accepted 2025-11-04 16:26:23
Filing Documents
- x101425910q.htm (10-Q) — 402KB
- ex31_1.htm (EX-31.1) — 9KB
- ex31_2.htm (EX-31.2) — 9KB
- ex32.htm (EX-32) — 8KB
- 0001214659-25-015886.txt ( ) — 1961KB
- cik0001455741-20250930.xsd (EX-101.SCH) — 21KB
- cik0001455741-20250930_cal.xml (EX-101.CAL) — 34KB
- cik0001455741-20250930_def.xml (EX-101.DEF) — 23KB
- cik0001455741-20250930_lab.xml (EX-101.LAB) — 158KB
- cik0001455741-20250930_pre.xml (EX-101.PRE) — 106KB
- x101425910q_htm.xml (XML) — 220KB
- 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 17 Item 4.
Controls and Procedures
Controls and Procedures 17
- OTHER INFORMATION
PART II - OTHER INFORMATION Item 1.
Legal Proceedings
Legal Proceedings 18 Item 1A.
Risk Factors
Risk Factors 18 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 18 Item 3. Defaults Upon Senior Securities 18 Item 4. Mine Safety Disclosures 18 Item 5. Other Information 18 Item 6. Exhibits 19
SIGNATURES
SIGNATURES 20 Table of Contents
– FINANCIAL INFORMATION
PART I – FINANCIAL INFORMATION
FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS RIDGEWOOD ENERGY X FUND, LLC UNAUDITED CONDENSED BALANCE SHEETS (in thousands, except share data) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 5,701 $ 6,728 Salvage fund 263 - Production receivable 269 245 Other current assets 612 17 Total current assets 6,845 6,990 Salvage fund 1,207 1,383 Investment in Delta House 119 119 Oil and gas properties: Advances to operators for capital expenditures 3 - Proved properties 11,496 11,136 Less: accumulated depletion and amortization ( 8,950 ) ( 8,497 ) Total oil and gas properties, net 2,549 2,639 Total assets $ 10,720 $ 11,131 Liabilities and Members' Capital Current liabilities: Due to operators $ 86 $ 40 Accrued expenses 56 58 Asset retirement obligations 263 - Total current liabilities 405 98 Due to operators 47 47 Asset retirement obligations 710 961 Total liabilities 1,162 1,106 Commitments and contingencies (Note 3) Members' capital: Manager: Distributions ( 8,559 ) ( 8,442 ) Retained earnings 7,508 7,412 Manager's total ( 1,051 ) ( 1,030 ) Shareholders: Capital contributions ( 500 shares authorized; 477.8874 issued and outstanding) 94,698 94,698 Syndication costs ( 11,080 ) ( 11,080 ) Distributions ( 50,676 ) ( 50,015 ) Accumulated deficit ( 22,333 ) ( 22,548 ) Shareholders' total 10,609 11,055 Total members' capital 9,558 10,025 Total liabilities and members' capital $ 10,720 $ 11,131 The accompanying notes are an integral part of these unaudited condensed financial statements. 1 Table of Contents RIDGEWOOD ENERGY X 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 $ 591 $ 804 $ 1,933 $ 2,581 Expenses Depletion and amorti