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

Rhea-AI Summary

NXG NextGen Infrastructure Income Fund (NYSE: NXG) has declared monthly distributions of $0.54 per common share for June, July, and August 2025. The distributions will be paid on June 30, July 31, and August 29, 2025, with corresponding record dates of June 16, July 2, and August 15. Notably, it is anticipated that approximately 100% of these distributions will be treated as a 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 MLP investments to 25% of Managed Assets and trades on the NYSE under the symbol NXG.

Positive

• Consistent monthly distribution of $0.54 per share maintained for three consecutive months
• Diversified infrastructure investment strategy across multiple sectors
• Clear investment mandate with 80% of assets in infrastructure-related securities

Negative

• 100% of distributions expected to be return of capital, not actual earnings
• Fund may trade at a discount to NAV as typical for closed-end funds
• Future distributions not guaranteed and subject to multiple conditions

Insights

Financial Analyst

NXG announces consistent $0.54 monthly distributions through August, classified as return of capital with tax implications for shareholders.

NXG NextGen Infrastructure Income Fund has declared monthly distributions of $0.54 per common share for June, July, and August 2025. The distributions maintain the fund's current payout level, providing income predictability for shareholders over the next quarter.

A key consideration for investors is that these distributions are preliminarily classified as 100% return of capital. Unlike dividend income, return of capital distributions aren't typically taxed as ordinary income but instead reduce shareholders' cost basis in the fund. The final tax determination won't be made until 2026, so this classification remains preliminary.

The fund includes standard cautionary language that these distributions could be deferred if necessary to maintain solvency and regulatory compliance. Like most closed-end funds, NXG trades based on market value rather than net asset value (NAV), and often at a discount to NAV—a structural characteristic investors should consider.

NXG's investment strategy focuses on infrastructure companies across four categories: energy, industrial, sustainable, and technology/communication infrastructure, with a cap of 25% in energy master limited partnerships. This diversified infrastructure approach aims to generate high total returns with an emphasis on current income.

DALLAS, June 2, 2025 /PRNewswire/ -- NXG NextGen Infrastructure Income Fund (NYSE: NXG) (the "Fund") declared monthly distributions of $0.54 per common share for each of June, July, and August 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
6/16/2025	6/16/2025	6/30/2025	$0.54	100 %
7/2/2025	7/2/2025	7/31/2025	$0.54	100 %
8/15/2025	8/15/2025	8/29/2025	$0.54	100 %

¹ The 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 100% of the Fund's distributions will be treated as a return of capital. The final determination of such amounts will be made and reported to shareholders in 2026, 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 a 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.

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SOURCE NXG Investment Management

FAQ

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

NXG NextGen Infrastructure Income Fund has declared monthly distributions of $0.54 per common share for June, July, and August 2025.

When are the payment dates for NXG's distributions in 2025?

The distributions will be paid on June 30, July 31, and August 29, 2025.

What percentage of NXG's distributions are expected to be return of capital?

It is currently anticipated that approximately 100% of the Fund's distributions will be treated as a return of capital.

What is NXG NextGen Infrastructure Income Fund's investment strategy?

The Fund invests at least 80% of its net assets in equity and debt securities of infrastructure companies across energy, industrial, sustainable, and technology sectors, with MLP investments limited to 25% of Managed Assets.

How are NXG's distributions determined?

Distributions are declared by the Fund's Board of Trustees based on factors including net investment income, financial performance, available cash, and compliance with leverage financing facility terms.