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 September, October, and November 2025. The distributions will be paid on September 30, October 31, and November 28, 2025, respectively.

The Fund, which trades on the NYSE, focuses on achieving high total returns with an emphasis on current income by investing at least 80% of its net assets in infrastructure companies across energy, industrial, sustainable, and technology sectors. Currently, it's anticipated that approximately 100% of the Fund's distributions will be treated as a return of capital, with final tax status to be determined and reported to shareholders in 2026.

Positive

• None.

Negative

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

Insights

Income Fund Specialist

NXG declares consistent $0.54 monthly distributions through November 2025, with 100% expected return of capital tax treatment.

NXG NextGen Infrastructure Income Fund has announced its upcoming $0.54 per common share monthly distributions for September through November 2025. What's particularly notable here is the 100% return of capital classification that's expected for these distributions, though this won't be finalized until 2026 tax reporting.

This return of capital treatment has significant tax implications for shareholders. Unlike dividend income, returns of capital aren't immediately taxable—they reduce your cost basis in the fund instead. This effectively defers the tax impact until shares are eventually sold. For investors holding positions in taxable accounts, this creates a substantial tax efficiency advantage in the near term.

The fund's distribution continuity signals management's confidence in maintaining its payout level despite the standard disclaimer about potential future changes. With its diverse infrastructure focus across energy, industrial, sustainable, and technology sectors, NXG maintains a broad mandate while capping MLP exposure at 25% of managed assets to manage tax complexities.

Worth noting is the fund's trading mechanism—as a closed-end fund, NXG trades based on market value rather than NAV, often at a discount to its underlying asset value. This creates potential opportunities for investors to purchase assets below their intrinsic worth, though this dynamic works both ways during market volatility.

DALLAS, Sept. 2, 2025 /PRNewswire/ -- NXG NextGen Infrastructure Income Fund (NYSE: NXG) (the "Fund") declared monthly distributions of $0.54 per common share for each of September, October, and November 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
9/16/2025	9/16/2025	9/30/2025	$0.54	100 %
10/15/2025	10/15/2025	10/31/2025	$0.54	100 %
11/17/2025	11/17/2025	11/28/2025	$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 has declared a monthly distribution of $0.54 per common share for September, October, and November 2025.

When are the NXG distribution payment dates for 2025?

The distributions will be paid on September 30, October 31, and November 28, 2025.

What percentage of NXG's distribution 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 to be made in 2026.

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

The Fund invests at least 80% of its net assets in infrastructure companies across four sectors: energy, industrial, sustainable, and technology infrastructure. It limits energy MLP investments 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 compliance with leverage financing terms, net investment income, financial performance, and available cash.