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

Rhea-AI Summary

NXG Cushing Midstream Energy Fund (NYSE: SRV) declared monthly distributions of $0.45 per common share for February, March, April, and May 2026. Payment dates are 2/27/2026, 3/31/2026, 4/30/2026 and 5/29/2026 with record/ex-dividend dates shown.

The Fund currently estimates approximately 100% of each distribution will be treated as a return of capital; final tax character will be reported to shareholders in early 2027. The Fund invests primarily in midstream energy securities and trades under symbol SRV.

Positive

• Monthly distribution of $0.45 per share for four months
• Clear payment schedule with specific record, ex-dividend, and payment dates

Negative

• Fund estimates ~100% return of capital for each distribution
• Distributions are not guaranteed and may be deferred to maintain solvency or comply with covenants

News Market Reaction

-0.10%

1 alert

-0.10% News Effect

On the day this news was published, SRV declined 0.10%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Monthly distribution: $0.45 per share Distribution months: 4 months Return of capital estimate: 100% +1 more

4 metrics

Monthly distribution $0.45 per share Declared for February–May 2026

Distribution months 4 months Consecutive monthly payouts February–May 2026

Return of capital estimate 100% Preliminary tax characterization for 2026 distributions

Midstream allocation policy At least 80% of net assets Target allocation to midstream energy investments

Market Reality Check

Price: $40.92 Vol: Volume 43,203 is below th...

normal vol

$40.92 Last Close

Volume Volume 43,203 is below the 20-day average of 60,897, suggesting a muted pre-news trading backdrop. normal

Technical Shares at $40.63 are trading below the 200-day MA of $41.73 and about 15% under the 52-week high of $47.96.

Peers on Argus

SRV was up 0.35% with mixed moves among peers: NXG +1.24%, GF +0.76%, MAV flat, ...

SRV was up 0.35% with mixed moves among peers: NXG +1.24%, GF +0.76%, MAV flat, EHI -0.31%, OPP +0.25%. This points to a stock-specific reaction to the distribution news rather than a broad asset management move.

Common Catalyst A closely related peer, NXG, also issued a same-day distribution announcement, highlighting a coordinated payout communication across affiliated funds.

Historical Context

5 past events · Latest: Dec 19 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 19	Special distribution	Positive	+1.6%	Announced a $2.14 special distribution on top of regular payout.
Dec 12	Rights offering result	Neutral	+1.4%	Reported oversubscribed transferable rights offering with ~$62M gross proceeds.
Dec 02	Monthly distribution	Positive	-2.1%	Declared $0.45 January 2026 distribution, estimated largely return of capital.
Nov 07	Rights offer & payout	Negative	-3.3%	Announced rights offering plus December distribution and sizable capital gains payout.
Sep 02	Distribution schedule	Positive	-0.0%	Set $0.45 monthly distributions for three months with high return-of-capital component.

Pattern Detected

SRV frequently announces distributions; market reactions have been modest, with one notable negative divergence on a prior distribution update.

Recent Company History

Over the last six months, SRV has repeatedly communicated on capital actions and distributions. On Sep 2, 2025, it set $0.45 monthly payouts for three months. A Nov 7, 2025 update detailed a rights offering and a projected $10M–$15M special capital gains distribution. The rights offering was later confirmed oversubscribed on Dec 12, 2025, followed by a $2.14 special distribution on Dec 19, 2025. Today’s multi-month $0.45 distribution declaration extends this established payout pattern.

Market Pulse Summary

This announcement extends SRV’s established pattern of monthly $0.45 distributions, now scheduled th...

Analysis

This announcement extends SRV’s established pattern of monthly $0.45 distributions, now scheduled through May 2026, and again projects an estimated 100% return-of-capital characterization. Historically, the fund has paired regular payouts with episodic capital actions, including rights offerings and special distributions, which have produced varied price reactions. Investors may monitor how the high return-of-capital mix, midstream energy exposure, and any future capital-raising steps interact with net asset value trends and overall performance.

Key Terms

return of capital, closed-end management investment company, net asset value, ex-dividend date

4 terms

return of capital financial

"It is currently anticipated, but not certain, that approximately 100% of the Fund's distributions will be treated as a return of capital."

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

closed-end management investment company financial

"The Fund is a non-diversified, closed-end management investment company with an investment objective..."

A closed-end management investment company is a pooled investment fund that raises a fixed amount of capital by issuing a set number of shares and then lists those shares for trading on an exchange; investors buy and sell shares on the market rather than redeeming them back to the fund. Think of it like a store with a fixed number of bottles on the shelf: the market price can be higher or lower than the underlying value of the assets, which matters to investors because it affects returns, liquidity and income characteristics independent of the fund’s actual holdings.

net asset value financial

"closed-end funds trade on their market value, not net asset value, and closed-end funds often trade at a discount..."

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

ex-dividend date financial

"Record Date | Ex-Dividend Date | Payment Date | Distribution Amount | Return of Capital Estimate"

The ex-dividend date is the date when a stock starts trading without the value of its next dividend payment included. If you buy the stock on or after this date, you won't receive that upcoming dividend; only those who owned the stock before this date are entitled to it. It matters to investors because it determines who is eligible to receive the dividend and can influence the stock’s price around that time.

AI-generated analysis. Not financial advice.

DALLAS, Feb. 2, 2026 /PRNewswire/ -- The NXG Cushing® Midstream Energy Fund (NYSE: SRV) (the "Fund") declared monthly distributions of $0.45 per common share for each of February, March, April, and May 2026.  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
2/17/2026	2/17/2026	2/27/2026	$0.45	100 %
3/16/2026	3/16/2026	3/31/2026	$0.45	100 %
4/16/2026	4/16/2026	4/30/2026	$0.45	100 %
5/15/2026	5/15/2026	5/29/2026	$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 2027, 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.

View original content:https://www.prnewswire.com/news-releases/nxg-cushing-midstream-energy-fund-nyse-srv-announces-distributions-302676006.html

SOURCE NXG Investment Management

FAQ

What distributions did NXG Cushing Midstream Energy Fund (SRV) declare for early 2026?

The Fund declared $0.45 per share monthly distributions for Feb–May 2026. According to the company, payment dates are 2/27/2026, 3/31/2026, 4/30/2026 and 5/29/2026 with listed record/ex-dividend dates.

How will the SRV distributions be taxed for shareholders in 2026?

The distributions are currently estimated to be approximately 100% return of capital. According to the company, final tax characterization will be determined and reported to shareholders in early 2027 and may differ.

When will SRV shareholders receive the February 2026 distribution payment?

The February payment is scheduled for February 27, 2026. According to the company, the record and ex-dividend date for that distribution is 2/17/2026 and the payment will occur on 2/27/2026 unless deferred.

Does NXG Cushing Midstream Energy Fund guarantee future distributions for SRV shareholders?

No, future distributions are not guaranteed and may be suspended or changed. According to the company, the Board considers cash, net investment income, and financing covenants before declaring distributions.

What does a return of capital estimate mean for SRV investors receiving distributions?

A return of capital estimate indicates distributions may reduce cost basis rather than be taxable income. According to the company, final earnings and profits will determine the true tax treatment reported in early 2027.