Ridgewood Energy A-1 Fund's Net Income Plunges 84% Amid Revenue Decline

TL;DR

**Ridgewood Energy A-1 Fund is bleeding cash, and investors should be wary of continued underperformance.**

AI Summary

Ridgewood Energy A-1 Fund, LLC reported a significant decline in financial performance for the nine months ended September 30, 2025, with net income plummeting to $79 thousand from $507 thousand in the prior year, representing an 84.4% decrease. Total revenue also saw a substantial drop, falling to $1.147 million from $1.670 million, a 31.3% reduction, primarily due to decreased oil and gas revenue. The company experienced a net loss of $11 thousand for the three months ended September 30, 2025, compared to a net income of $144 thousand in the same period of 2024. Cash and cash equivalents increased to $510 thousand as of September 30, 2025, from $446 thousand at December 31, 2024, despite a sharp decrease in net cash provided by operating activities to $675 thousand from $1.260 million. Total assets decreased to $3.945 million from $4.230 million, largely driven by a reduction in net oil and gas properties from $1.661 million to $1.199 million. The Fund's capital commitments related to oil and gas properties were estimated at $3.4 million as of September 30, 2025, with $1.1 million expected to be spent in the next twelve months, including $2.3 million for asset retirement obligations.

Why It Matters

This filing reveals a sharp deterioration in Ridgewood Energy A-1 Fund's financial health, with significant implications for its investors. The substantial drop in net income and revenue signals potential challenges in the company's core oil and gas operations, which could impact future distributions to shareholders. In a competitive energy market, declining production and revenue can make it harder to fund future capital expenditures and maintain asset value. Employees might face uncertainty if operational cutbacks become necessary, while customers could see shifts in supply dynamics. The broader market may view this as a signal of volatility in smaller, specialized energy funds, potentially affecting investor confidence in similar ventures.

Risk Assessment

Risk Level: high — The risk level is high due to the significant 84.4% decline in net income for the nine months ended September 30, 2025, falling to $79 thousand from $507 thousand in the prior year. Additionally, oil and gas revenue decreased by 36% from $1.555 million in 2024 to $996 thousand in 2025 for the nine-month period, indicating a substantial reduction in core operational performance. The company also reported a net loss of $11 thousand for the three months ended September 30, 2025, compared to a net income of $144 thousand in the same period of 2024.

Analyst Insight

Investors should consider divesting or significantly reducing their exposure to Ridgewood Energy A-1 Fund given the severe decline in net income and revenue. A thorough review of the company's ability to meet its $3.4 million in capital commitments, especially the $1.1 million due in the next 12 months, is critical before making any further investment decisions.

Financial Highlights

debt To Equity

0.92

revenue

$1.147 million

operating Margin

0.96%

total Assets

$3.945 million

total Debt

$1.893 million

net Income

$79 thousand

eps

$ (5)

gross Margin

3.57%

cash Position

$510 thousand

revenue Growth

-31.3%

Revenue Breakdown

Key Numbers

• $79 thousand — Net income for nine months ended Sep 30, 2025 (Decreased 84.4% from $507 thousand in 2024)
• $1.147 million — Total revenue for nine months ended Sep 30, 2025 (Decreased 31.3% from $1.670 million in 2024)
• $996 thousand — Oil and gas revenue for nine months ended Sep 30, 2025 (Decreased from $1.555 million in 2024)
• $11 thousand — Net loss for three months ended Sep 30, 2025 (Compared to net income of $144 thousand in 2024)
• $510 thousand — Cash and cash equivalents as of Sep 30, 2025 (Increased from $446 thousand at Dec 31, 2024)
• $675 thousand — Net cash provided by operating activities for nine months ended Sep 30, 2025 (Decreased from $1.260 million in 2024)
• $3.945 million — Total assets as of Sep 30, 2025 (Decreased from $4.230 million at Dec 31, 2024)
• $1.199 million — Total oil and gas properties, net as of Sep 30, 2025 (Decreased from $1.661 million at Dec 31, 2024)
• $3.4 million — Estimated capital commitments as of Sep 30, 2025 (Includes $2.3 million for asset retirement obligations)
• 207.7026 — Shares of LLC Membership Interest outstanding (As of November 4, 2025)

Key Players & Entities

• RIDGEWOOD ENERGY A-1 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
• Delaware (location) — State of incorporation
• Gulf of America (location) — Location of oil and gas properties
• Texas (location) — Location of oil and gas properties
• Louisiana (location) — Location of oil and gas properties
• Alabama (location) — Location of oil and gas properties

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The Fund's financial performance is highly sensitive to fluctuations in oil and gas prices. A significant drop in prices, as seen in the decrease of oil and gas revenue from $1.555 million to $996 thousand for the nine months ended September 30, 2025, directly impacts profitability.
• Declining Operating Cash Flow [medium — financial]: Net cash provided by operating activities decreased substantially from $1.260 million to $675 thousand for the nine months ended September 30, 2025. This reduction, despite an increase in cash and cash equivalents to $510 thousand, signals potential future liquidity challenges if the trend continues.
• Asset Depreciation and Impairment [medium — financial]: Total oil and gas properties, net, decreased from $1.661 million to $1.199 million due to depletion and amortization. Further impairments could negatively affect the asset base and equity.
• Capital Commitment Obligations [medium — operational]: The Fund has estimated capital commitments of $3.4 million, with $1.1 million expected in the next twelve months, including $2.3 million for asset retirement obligations. Failure to meet these obligations could lead to penalties or operational disruptions.
• Asset Retirement Obligations [medium — regulatory]: A significant portion of capital commitments, $2.3 million, is allocated to asset retirement obligations. Changes in environmental regulations or unforeseen costs associated with these obligations could impact financial results.

Industry Context

The oil and gas exploration and production sector is characterized by high capital intensity and significant exposure to commodity price volatility. Companies in this industry face ongoing challenges related to exploration success, regulatory compliance, and environmental stewardship. Recent market trends indicate a focus on efficiency and cost management amidst fluctuating global energy demand and supply dynamics.

Regulatory Implications

The Fund must comply with various environmental regulations, particularly concerning asset retirement obligations for its oil and gas properties. Changes in environmental laws or stricter enforcement could increase compliance costs and potential liabilities. Additionally, standard financial reporting regulations require accurate disclosure of financial performance and risks.

What Investors Should Do

1. Monitor commodity price trends
2. Analyze operating cash flow trends
3. Evaluate capital commitment execution
4. Assess asset impairment risk

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported significant decline in net income (84.4%) and revenue (31.3%) due to lower oil and gas revenue.
• 2025-09-30: Three months ended September 30, 2025 — Recorded a net loss of $11 thousand, a reversal from a net income of $144 thousand in the prior year's quarter.
• 2025-09-30: Balance Sheet Date — Total assets decreased to $3.945 million from $4.230 million, primarily due to a reduction in oil and gas properties.
• 2024-12-31: Year-End Balance Sheet Date — Cash and cash equivalents stood at $446 thousand, which increased to $510 thousand by September 30, 2025.

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 a significant expense for an oil and gas company, directly reducing reported income and reflecting the consumption of assets.)

Asset retirement obligations

The estimated costs to retire or dispose of a tangible asset at the end of its useful life, such as plugging an oil well. (Represents a future liability that the Fund must account for and fund, impacting current financial commitments and future cash outflows.)

Salvage fund

A fund set aside to cover costs associated with the eventual decommissioning or sale of assets, often related to oil and gas properties. (Indicates a provision for future costs, impacting the Fund's liquidity and asset base.)

Syndication costs

Costs incurred by a fund to market and sell its membership interests to investors. (These are typically capitalized costs that are amortized over time, affecting the equity section of the balance sheet.)

Year-Over-Year Comparison

Ridgewood Energy A-1 Fund, LLC has experienced a significant downturn in financial performance compared to the prior year. For the nine months ended September 30, 2025, total revenue decreased by 31.3% to $1.147 million, and net income plummeted by 84.4% to $79 thousand. This decline is primarily attributed to lower oil and gas revenue. Operating expenses saw a slight increase, while depletion and amortization expenses decreased. The Fund's total assets have also contracted, largely due to a reduction in net oil and gas properties. Despite a decrease in operating cash flow, the company managed to increase its cash and cash equivalents.

Filing Documents

• a1101425310q.htm (10-Q) — 382KB
• ex31_1.htm (EX-31.1) — 9KB
• ex31_2.htm (EX-31.2) — 9KB
• ex32.htm (EX-32) — 8KB
• 0001214659-25-015888.txt ( ) — 1798KB
• cik0001457919-20250930.xsd (EX-101.SCH) — 18KB
• cik0001457919-20250930_cal.xml (EX-101.CAL) — 29KB
• cik0001457919-20250930_def.xml (EX-101.DEF) — 22KB
• cik0001457919-20250930_lab.xml (EX-101.LAB) — 144KB
• cik0001457919-20250930_pre.xml (EX-101.PRE) — 94KB
• a1101425310q_htm.xml (XML) — 189KB

- 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 A-1 FUND, LLC UNAUDITED CONDENSED BALANCE SHEETS (in thousands, except share data) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 510 $ 446 Production receivable 88 136 Due from affiliate (Note 2) 12 15 Other current assets 49 32 Total current assets 659 629 Salvage fund 2,087 1,940 Oil and gas properties: Proved properties 18,337 18,309 Less: accumulated depletion and amortization ( 17,138 ) ( 16,648 ) Total oil and gas properties, net 1,199 1,661 Total assets $ 3,945 $ 4,230 Liabilities and Members' Capital Current liabilities: Due to operators $ 28 $ 17 Accrued expenses 58 60 Total current liabilities 86 77 Asset retirement obligations 1,807 1,744 Total liabilities 1,893 1,821 Commitments and contingencies (Note 3) Members' capital: Manager: Distributions ( 6,961 ) ( 6,896 ) Retained earnings 8,255 8,175 Manager's total 1,294 1,279 Shareholders: Capital contributions ( 250 shares authorized; 207.7026 issued and outstanding) 41,143 41,143 Syndication costs ( 4,804 ) ( 4,804 ) Distributions ( 46,205 ) ( 45,834 ) Retained earnings 10,624 10,625 Shareholders' total 758 1,130 Total members' capital 2,052 2,409 Total liabilities and members' capital $ 3,945 $ 4,230 The accompanying notes are an integral part of these unaudited condensed financial statements. 1 Table of Contents RIDGEWOOD ENERGY A-1 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 $ 277 $ 467 $ 996 $ 1,555 Other revenue 43 53 151 115 Total revenue 320 520 1,147 1,670 Expenses Depletion and amortization 145 205 490 649 Operating expenses 94 87 289 256 Management fees to affiliate (Note 2

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View this 10-Q filing on SEC EDGAR