RIDGEWOOD ENERGY T FUND LLC: Navigating 2025 – An Annual Report Summary

For investors tracking RIDGEWOOD ENERGY T FUND LLC, the year 2025 brought significant operational challenges and strategic shifts. This summary provides a concise overview of the Fund's activities, financial performance, and future outlook for the year ended December 31, 2025.

Business Overview: What RIDGEWOOD ENERGY T FUND LLC Does

RIDGEWOOD ENERGY T FUND LLC operates as an investment fund specializing in the oil and natural gas sector. Instead of drilling directly, the Fund acquires "working interests"—ownership stakes—in oil and natural gas properties. These interests entitle the Fund to a share of the production from these assets. Its primary investments are located in U.S. offshore waters, specifically in the Gulf of Mexico (off the coasts of Texas, Louisiana, and Alabama).

Established in 2006, the Fund initially raised approximately $121 million in capital for investments. Its capital is now fully deployed, meaning the Fund will no longer acquire new oil and gas projects. Instead, it focuses solely on managing its existing portfolio.

Financial Performance: A 2025 Snapshot

The year 2025 proved challenging for the Fund. A clear decline in cash distributions signals a significant impact on financial performance.

Key financial indicators for 2025 include:

• Cash Distributions: Cash distributions from the Fund's operations decreased in 2025. The Manager's share of distributions fell significantly from $0.2 million in 2024 to $0.1 million in 2025. This indicates a notable reduction in the Fund's overall cash flow available for investor distributions.
• Capital Expenditures: The Fund expects substantial additional expenditures due to operational challenges. These include $1.1 million for development costs (primarily for recompleting Well #4) and a projected $1.5 million for future asset retirement obligations (ARO).

Risk Factors: Key Considerations for Investors

Investing in RIDGEWOOD ENERGY T FUND LLC involves several significant risks:

• Concentration Risk: The Fund heavily relies on the Beta Project. Therefore, any operational issues, production declines, or adverse events affecting this single asset will disproportionately impact the Fund's financial performance and distributions.
• Operational Challenges: Ongoing issues with Well #3 and Well #4, alongside planned work on Well #2 and Well #5, create significant operational hurdles. These challenges can lead to lost production, increased capital expenditures, and uncertainty about future cash flows.
• Commodity Price Volatility: The Fund's income directly ties to the fluctuating market prices of oil and natural gas. Significant price drops could severely impact profitability and distributions. Conversely, very high prices might negate royalty relief benefits.
• Illiquidity of Investment: No public market exists for the Fund's shares, and strict rules govern share transfers. This means investors cannot easily buy or sell their shares, making the investment highly illiquid.
• Reliance on Manager: Investors depend entirely on Ridgewood Energy Corporation's management decisions, operational expertise, and integrity, as the Fund itself does not operate the wells.
• Production Decline: As a fully deployed oil and gas fund that no longer acquires new assets, the natural decline of existing wells' production over time presents an inherent risk, potentially diminishing cash flows and asset value.
• Environmental and Regulatory Risks: Offshore operations face stringent environmental regulations. Events like spills, changes in regulatory requirements, or increased decommissioning costs could significantly impact the Fund.
• Geopolitical and Natural Disaster Risks: Global events, economic downturns, and severe weather (such as Gulf of Mexico hurricanes) can disrupt operations, damage infrastructure, and negatively affect energy demand and prices.

Management Discussion and Analysis (MD&A) Highlights

The year 2025 marked both a strategic shift and significant operational challenges for the Fund.

Results of Operations: Cash distributions to the Manager declined from $0.2 million in 2024 to $0.1 million in 2025, reflecting a challenging operational year. This reduction primarily stems from production disruptions at the Beta Project, the Fund's core asset. Pressure build-up issues in late 2025 shut down two key wells, Well #3 and Well #4, directly impacting production volumes and cash flow.

Liquidity and Capital Resources: The Fund's capital is now fully deployed, meaning it plans no new acquisitions. However, it directs significant capital resources toward maintaining and optimizing its existing asset base. The Fund anticipates substantial additional expenditures for the Beta Project, including $1.1 million for development costs (primarily for recompleting Well #4) and a projected $1.5 million for future asset retirement obligations (ARO). As of December 31, 2025, the Fund had spent approximately $16.77 million on the Beta Project against a total budget of $19.37 million, allocating the remaining budget to ongoing and planned operational work.

Investment Strategy: With its capital fully deployed, the Fund's strategy focuses solely on managing and optimizing its existing portfolio of properties. Its primary objective is to generate consistent cash flow from these assets for distribution to investors.

The Beta Project: The Fund's Core Asset: The Fund derives a substantial portion of its value and cash flow from the Beta Project, located in the Gulf of Mexico. This concentration means the Fund's performance depends highly on the project's success and operational stability. The Beta Project comprises seven wells, with initial production commencing between 2016 and 2019.

Key Operational Setbacks and Future Plans for the Beta Project:

• Well #3 and Well #4 Shutdown: Both wells ceased operation in late 2025 due to pressure build-up.
• Well #4 Recompletion: A major "rig recompletion operation" began on Well #4 in January 2026 and continues, with an expected duration of several months.
• Future Work: The Fund plans similar recompletion work for Well #5 and Well #2.
• Well #3 Status: The operator continues to evaluate solutions to bring Well #3 back online.

Royalties and Relief: The Fund pays royalties to the U.S. Government on its production, plus an additional 11.59% royalty on Beta Project production to a former lender. The Beta Project qualifies for "Deepwater Royalty Relief," which waives royalties on certain production volumes. However, this relief depends on oil prices remaining below roughly $48-$63 per barrel and natural gas prices below $6-$10 per unit.

Future Outlook

The Fund's future outlook centers on its transition to a fully deployed model and its commitment to optimizing its existing asset base, primarily the Beta Project.

• Strategy: The Fund will no longer acquire new oil and gas projects. Its strategy focuses solely on managing and optimizing its existing portfolio of properties to generate consistent cash flow for investor distribution.
• Operational Focus: The Fund will direct significant efforts toward resolving operational issues at the Beta Project. This includes the ongoing recompletion of Well #4 and planned similar work for Well #5 and Well #2. The operator continues to evaluate solutions for Well #3.
• Capital Allocation: Anticipated development costs of $1.1 million and future asset retirement obligations of $1.5 million highlight the ongoing capital expenditures necessary to maintain and eventually decommission the Fund's assets.
• Production: Successfully resolving operational issues at the Beta Project wells is critical to restore and stabilize production volumes and, consequently, cash flow.

Competitive Position

As a fully deployed investment fund, RIDGEWOOD ENERGY T FUND LLC's competitive position has shifted. It no longer actively competes for new investment opportunities but instead focuses on optimizing the performance of its existing, concentrated asset base.

• Niche Focus: The Fund's focus on acquiring working interests in U.S. offshore waters, particularly the Gulf of Mexico, occupies a specialized niche within the broader energy investment landscape.
• Operational Reliance: The Fund's performance, and by extension its competitive standing in terms of investor returns, depends entirely on the operational expertise of its Manager, Ridgewood Energy Corporation, and the third-party operators of its wells.
• Asset Optimization: Any current "competitive advantage" stems from its ability to efficiently manage and maximize cash flow from its existing, mature assets, particularly the Beta Project, in a cost-effective manner.
• Market Position: The Fund does not directly compete for market share in oil and gas production or sales; its Manager facilitates sales to third-party purchasers. Its competitive position, therefore, centers on its ability to deliver returns to its limited partners relative to other investment vehicles, rather than direct market competition with operating companies.

The Bottom Line for Investors

RIDGEWOOD ENERGY T FUND LLC has transitioned to a fully deployed model, aiming to maximize cash flow from its existing oil and natural gas properties, primarily the Beta Project. The year 2025 presented significant operational challenges with key wells, resulting in lower distributions to the Manager and necessitating substantial additional investment. Investors must carefully consider the Fund's concentrated asset base, ongoing operational hurdles, the inherent volatility of energy prices, and the investment's illiquid nature.