USEDC Opportunity Zone IV LP

At a glance

Targets are sponsor-stated and not guaranteed.

Investment thesis

Oil & gas QOF benefits relative to typical real estate OZ funds: revenue-driven by production (not pre-revenue construction periods); accelerated revenue cycle; multiple-well diversification; operational repeatability.

Over the past 50 years, WTI crude oil prices have averaged ~$72/barrel adjusted for inflation, demonstrating long-term price stability through multiple commodity cycles.

U.S. Energy investment philosophy emphasizes execution over price prediction: disciplined deployment with hedging, asset selection and entry price, compliance/basin selection, operator choice, diversification, and long-term hold optionality.

Prior fund performance per sponsor data (as of 9/30/2025): USEDC 2019 A — 86.0% fund return / 53.3% distributions; QOZ I — 78.9% / 24.5%; QOZ II — 57.2% / 14.0%; QOZ III — TBD / 6.5%.

Geographic focus

Oil & gas development across federally designated Opportunity Zones, primarily targeting Permian Basin and Eagle Ford. Multi-well, multi-asset structure with continuous reinvestment.

Investor timeline

Sponsor

U.S. Energy Development Corporation , 7 years operating in Opportunity Zones . Upstream oil & gas company operating and investing in the U.S., founded in 1980 with 2nd-generation ownership. 100+ professionals across oil & gas operations, sales & marketing, and investor services. Per sponsor materials: top 3% of QOF managers in total capital raised; raised $984M+ across all U.S. Energy funds in 2025 including co-investments; Q1 2025 revenues of $105.8M; ~20,000+ BOE per day production. Securities offered through Westmoreland Capital Corporation (FINRA/SIPC), an affiliate. Headquartered in Fort Worth, TX.

Prior funds: USEDC 2019 A (2019, 86.0% fund return to date, 20 quarters producing; 122 wells active); USEDC QOZ I (2020, 78.9% fund return to date, 22 quarters producing; 176 wells active); USEDC QOZ II (2022, 57.2% fund return to date, 15 quarters producing; 141 wells active); USEDC QOZ III (2024, TBD, 11 quarters producing; 59 wells active).

Leadership team

The people responsible for acquiring and managing the fund's assets.

Key risks

• Illiquid for ~10 years. No public market for shares; plan to leave capital invested for a decade.
• Returns are targets, not guarantees. Real estate can underperform; you could receive less than invested.
• Tax benefit requires the full hold. The appreciation exclusion applies only at 10+ years.
• Commodity price exposure — performance heavily influenced by oil & natural gas price volatility.
• Oil & gas reserves deplete over time; distributions may be considered return of capital until 100% invested capital is returned.
• Reserve estimation and well-performance risks; not all wells may produce commercial quantities sufficient to recover costs.
• Substantial conflicts of interest may exist between the managing general partner and investors.
• Tax-equity treatment depends on continued qualification as a Partnership and as a Qualified Opportunity Fund.
• Borrowing by the managing general partner could reduce funds available for the partnership's presentment obligation.
• Investor may owe taxes in excess of cash distributions in certain circumstances.
• QOZ benefits may be reduced or eliminated by future regulatory or legislative changes.
• Single-sponsor execution risk. Outcomes depend on U.S. Energy Development Corporation's acquisition and management. Past performance does not guarantee future results.

Model your return

Compare this fund's after-tax outcome against paying the tax and investing elsewhere.