NXG Cushing® Midstream Energy Fund (NYSE: SRV) Announces Distributions

Rhea-AI Summary

The NXG Cushing Midstream Energy Fund (NYSE: SRV) has declared monthly distributions of $0.45 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 16, and August 15. It is anticipated that approximately 100% of the distributions will be treated as a return of capital, with final tax status to be determined in early 2026. The Fund is a non-diversified, closed-end management investment company focusing on midstream energy investments, with at least 80% of its net assets invested in companies providing services like gathering, transporting, processing, and distributing natural resources. The Fund trades on the NYSE under symbol SRV and aims to achieve high after-tax total returns through capital appreciation and current income.

Positive

• Monthly distribution of $0.45 per share provides steady income stream to shareholders
• Fund maintains consistent distribution schedule for next three months
• Fund's investment strategy provides diversified exposure to midstream energy infrastructure sector

Negative

• 100% of distributions expected to be return of capital, not earned income
• Fund trades at potential discount to NAV as a closed-end fund
• Non-diversified investment strategy carries concentrated sector risk

Insights

Income Investment Specialist

SRV declares $0.45 monthly distributions for Q2 2025, expected to be 100% return of capital with favorable tax treatment.

The NXG Cushing® Midstream Energy Fund has announced its upcoming quarterly distributions of $0.45 per share for June, July, and August 2025. The consistency of these monthly payments signals stability in the fund's distribution policy. What's particularly noteworthy is that 100% of these distributions are preliminarily classified as return of capital rather than dividend income. This is significant for investors because return of capital distributions receive more favorable tax treatment than ordinary dividends – they aren't immediately taxable but instead reduce your cost basis in the fund.

The fund maintains its focus on midstream energy investments, requiring at least 80% of its assets to be invested in companies providing services like gathering, transporting, processing, and distributing natural resources. This sector typically generates steady cash flows through fee-based business models, which supports the fund's ability to maintain consistent distributions. The fund defines eligible companies as those deriving at least 50% of their assets, income, or operations from midstream services.

While the distributions appear stable, investors should note the cautionary language regarding the Board's ability to defer payments if necessary to comply with applicable laws or ensure fund solvency. This standard disclosure highlights that distributions aren't guaranteed. Additionally, the final tax characterization won't be confirmed until early 2026, though the preliminary estimate suggests the favorable return of capital treatment will apply to the full amount.

DALLAS, June 2, 2025 /PRNewswire/ -- The NXG Cushing® Midstream Energy Fund (NYSE: SRV) (the "Fund") declared monthly distributions of $0.45 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	$0.45	100 %
7/16/2025	7/16/2025	7/31/2025	$0.45	100 %
8/15/2025	8/15/2025	8/29/2025	$0.45	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 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 early 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 non-diversified, closed-end management investment company with an investment objective of seeking a high after-tax total return from a combination of capital appreciation and 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 midstream energy investments. The Fund considers midstream energy investments to be investments that offer economic exposure to securities of midstream energy companies, which are companies that engage in providing midstream services in the energy infrastructure sector, including the gathering, transporting, processing, fractionation, storing, refining and distribution of natural resources, such as natural gas, natural gas liquids, crude oil refined petroleum products, biofuels, carbon sequestration, solar, and wind. The Fund considers a company to be a midstream energy company if at least 50% of its assets, income, sales or profits are committed to, derived from or otherwise related to midstream energy services. The Fund's shares are traded on the New York Stock Exchange under the symbol "SRV."

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 NXG Investment Management 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 Cushing Midstream Energy Fund (SRV) in summer 2025?

The NXG Cushing Midstream Energy Fund (SRV) will distribute $0.45 per common share monthly for June, July, and August 2025.

When are the payment dates for SRV's summer 2025 distributions?

The payment dates are June 30, 2025 for June distribution, July 31, 2025 for July distribution, and August 29, 2025 for August distribution.

What percentage of SRV's distributions is 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, with final determination in early 2026.

What is the main investment focus of the NXG Cushing Midstream Energy Fund?

The Fund invests at least 80% of its net assets in midstream energy companies that provide services like gathering, transporting, processing, and distributing natural resources.

What is the stock exchange and symbol for the NXG Cushing Midstream Energy Fund?

The Fund trades on the New York Stock Exchange (NYSE) under the symbol SRV.