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

Rhea-AI Summary

The NXG Cushing® Midstream Energy Fund (NYSE: SRV) has announced monthly distributions of $0.45 per common share for December 2024 and January 2025. The December distribution is expected to have 0.00% return of capital, while the January distribution is anticipated to be 100% return of capital. Final tax status determinations will be reported to shareholders in early 2025 for 2024 dividends and 2026 for 2025 dividends.

The Fund is a non-diversified, closed-end management investment company that invests at least 80% of its assets in midstream energy investments, focusing on companies providing services in energy infrastructure sectors.

Positive

• Monthly distribution of $0.45 per share maintained
• Consistent distribution schedule established for next two months

Negative

• 100% of January 2025 distribution expected to be return of capital, indicating potential lack of earnings
• Fund trades at market value which may be at discount to NAV

Insights

Financial Analyst

The Fund's monthly distribution announcement of $0.45 per share for December 2024 and January 2025 represents significant income potential for investors. The notable aspect is the varying return of capital structure - 0% for December and 100% for January. The January distribution being entirely return of capital has different tax implications for investors, as it reduces their cost basis rather than being taxed as ordinary income.

The Fund's focus on midstream energy investments, requiring 80% of net assets in this sector, provides targeted exposure to energy infrastructure. This concentration in companies involved in gathering, transporting and processing natural resources offers potential benefits from energy sector dynamics but also carries sector-specific risks. The non-diversified nature of the fund and its ability to use borrowing for investments adds another layer of risk consideration.

DALLAS, Dec. 2, 2024 /PRNewswire/ -- The NXG Cushing® Midstream Energy Fund (NYSE: SRV) (the "Fund") declared monthly distributions of $0.45 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	$0.45	0.00 %
January 16, 2025	January 16, 2025	January 31, 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 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 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 provide 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.

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.

View original content:https://www.prnewswire.com/news-releases/nxg-cushing-midstream-energy-fund-nyse-srv-announces-distributions-302319740.html

SOURCE NXG Investment Management

FAQ

What is the monthly distribution amount for NXG Cushing Midstream Energy Fund (SRV)?

The monthly distribution amount is $0.45 per common share for both December 2024 and January 2025.

When are the payment dates for SRV's December 2024 and January 2025 distributions?

The payment dates are December 31, 2024, for the December distribution and January 31, 2025, for the January distribution.

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

The January 2025 distribution is anticipated to be 100% return of capital, though final determination will be made in 2026.

What percentage of assets does SRV invest in midstream energy investments?

Under normal market conditions, SRV invests at least 80% of its net assets in midstream energy investments.