NXG NextGen Infrastructure Income Fund (NYSE: NXG) Announces Distributions

Rhea-AI Summary

NXG NextGen Infrastructure Fund (NYSE: NXG) has announced monthly distributions of $0.54 per common share for December 2024 and January 2025. The December distribution is expected to have 0% return of capital, while January's distribution is anticipated to be 100% return of capital. The Fund is a closed-end management investment company focusing on infrastructure companies, investing at least 80% of its net assets in equity and debt securities across energy, industrial, sustainable, and technology infrastructure sectors. The Fund limits its investment in energy master partnerships to 25% of Managed Assets.

Positive

• Consistent monthly distribution of $0.54 per share maintained
• Clear investment strategy with 80% allocation to infrastructure sectors
• Diversified portfolio across multiple infrastructure segments

Negative

• 100% of January 2025 distribution classified as return of capital, potentially indicating insufficient earnings
• Trading at potential discount to NAV (as mentioned in risk factors)

Insights

Financial Analyst

Monthly distributions of $0.54 per share for December 2024 and January 2025 represent significant income potential for investors. The distinct tax treatment between months is noteworthy - December's distribution shows 0% return of capital while January's is 100% return of capital. This tax treatment difference impacts investors' after-tax returns.

The fund's infrastructure focus across energy, industrial, sustainable and technology sectors provides diversified exposure to essential services with typically stable cash flows. The 80% minimum investment requirement in infrastructure companies, combined with a 25% MLP cap, suggests a balanced approach to sector allocation while maintaining tax efficiency.

The closed-end fund structure allows for potential value opportunities when trading at a discount to NAV, though this also presents price volatility risk beyond underlying asset performance.

DALLAS, Dec. 2, 2024 /PRNewswire/ -- NXG NextGen Infrastructure Fund (NYSE: NXG) (the "Fund") declared monthly distributions of $0.54 per common share for each of December 2024 and January 2025.  These monthly distributions will be payable to common shareholders pursuant to the table below:

Record Date	Ex-Dividend Date	Payment Date	Distribution Amount	Return of Capital Estimate1
December 16, 2024	December 16, 2024	December 31, 2024	$0.54	0.00 %
January 16, 2025	January 16, 2025	January 31, 2025	$0.54	100 %

¹The return of capital estimate is based on the Fund's current anticipated earnings and profits for the fiscal year and does not include a projection of gains and losses on the sale of securities which may occur during the remainder of the year.  It is currently anticipated, but not certain, that approximately 0.00% of the Fund's December distribution will be treated as a return of capital, and 100% of the Fund's January distribution will be treated as return of capital. The final determination of such amounts will be made and reported to shareholders in early 2025 for the 2024 dividends and 2026 for the 2025 dividends, after the end of the calendar year when the Fund determines its earnings and profits for the year. The final tax status of each distribution may differ substantially from this preliminary information.

The distribution shall be paid on the payment date unless the payment of such distribution is deferred by the Fund's Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or to ensure that the Fund remains solvent and able to pay its debts as they become due and continue as a going concern.

ADDITIONAL INFORMATION ABOUT THE FUND

The Fund is a closed-end management investment company with an investment objective of seeking a high total return with an emphasis on current income. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets, plus any borrowings for investment purposes, in a portfolio of equity and debt securities of infrastructure companies, including: (i) energy infrastructure companies, (ii) industrial infrastructure companies, (iii) sustainable infrastructure companies, and (iv) technology and communication infrastructure companies. The Fund will invest no more than 25% of its Managed Assets in securities of energy master limited partnerships ("MLPs") that qualify as publicly traded partnerships under the Internal Revenue Code. The Fund's shares are traded on the New York Stock Exchange under the symbol "NXG."

There can be no assurance that the Fund will achieve its investment objectives. Investments in the Fund involve operating expenses and fees. The net asset value of the Fund will fluctuate with the value of the underlying securities. It is important to note that closed-end funds trade on their market value, not net asset value, and closed-end funds often trade at a discount to their net asset value.  Future distributions will be made by the Fund if and when declared by the Fund's Board of Trustees, based on a consideration of number of factors, including the Fund's continued compliance with terms and financial covenants of its leverage financing facility, the Fund's net investment income, financial performance, and available cash.

There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.

ABOUT NXG Investment Management

Cushing® Asset Management, LP ("Cushing") is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts. Cushing is doing business as NXG Investment Management. The Firm provides Next Generation investment strategies to investors seeking long-term growth in companies focused on traditional and transformational infrastructure.

Contact: 
Blake Nelson
NXG Investment Management
214-692-6334
www.nxgim.com

IMPORTANT INFORMATION

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the Fund and Cushing believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the company's reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the Fund and Cushing do not assume a duty to update this forward-looking statement.

View original content:https://www.prnewswire.com/news-releases/nxg-nextgen-infrastructure-income-fund-nyse-nxg-announces-distributions-302319724.html

SOURCE NXG Investment Management

FAQ

What is the monthly distribution amount for NXG NextGen Infrastructure Fund?

NXG NextGen Infrastructure Fund (NYSE: NXG) declared monthly distributions of $0.54 per common share for December 2024 and January 2025.

What is the return of capital percentage for NXG's January 2025 distribution?

The January 2025 distribution is anticipated to have a 100% return of capital.

What is NXG's investment allocation requirement for infrastructure companies?

The Fund must invest at least 80% of its net assets in equity and debt securities of infrastructure companies under normal market conditions.

What is NXG's maximum investment limit in energy MLPs?

The Fund will invest no more than 25% of its Managed Assets in securities of energy master partnerships (MLPs).