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

NXG Cushing Midstream Energy Fund (NYSE: SRV) declared a special distribution of $2.14 per common share payable to holders of record on December 29, 2025 with payment on December 31, 2025.

Rhea-AI Summary

NXG Cushing Midstream Energy Fund (NYSE: SRV) declared a special distribution of $2.14 per common share payable to holders of record on December 29, 2025 with payment on December 31, 2025. This special distribution is in addition to the previously announced December distribution of $0.45 per share.

The fund estimates that 100% of the special distribution will consist of long-term capital gain; final tax characterization will be reported to shareholders in early 2026. The payout is intended to help the fund meet its 2025 distribution requirements as a regulated investment company.

Positive

• Special distribution of $2.14 per share declared
• Additional regular distribution of $0.45 per share previously announced
• Estimated 100% long-term capital gain characterization

Negative

• Final tax status may substantially differ when reported in early 2026
• Closed-end fund may trade at a discount to net asset value

Argus Dec 22 session

+1.62% close to close Open Argus

Details

News Market Reaction – SRV

In the Dec 22 session, SRV gained 1.62%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement adds a sizeable $2.14 special distribution to the Fund’s regular $0.45 December pa...

Analysis

This announcement adds a sizeable $2.14 special distribution to the Fund’s regular $0.45 December payout, largely estimated as long-term capital gain to satisfy 2025 regulated investment company requirements. Historically, SRV has paired income distributions with capital-raising moves like an oversubscribed rights offering totaling about $62,000,000. Investors may watch how recurring payouts affect net asset value, trading discounts to NAV, and future distribution policy once final 2025 tax character is reported in early 2026.

Key Figures

Special distribution: $2.14 per share Regular distribution: $0.45 per share Capital gains portion: 100% estimated long-term capital gain +5 more

Special distribution

$2.14 per share

Payable Dec 31, 2025; record and ex-dividend date Dec 29, 2025

Regular distribution

$0.45 per share

Previously announced December 2025 distribution

Capital gains portion

100% estimated long-term capital gain

Estimated tax character of $2.14 special distribution for 2025

Rights offering size

1,555,870 shares

Maximum common shares in recent transferable rights offering

Rights subscription price

$39.89 per share

Subscription price set at 92.5% of NAV on expiration date

Rights gross proceeds

$62,000,000

Expected gross proceeds from oversubscribed rights offering

Current price

$38.96

Pre-news price, about 23.02% below 52-week high of $50.6099

Volume spike

215,907 shares

Roughly 2.65x 20-day average volume of 81,597 shares

Historical Context

4 past events · Latest: Dec 12

4 events

1. Dec 12

   Rights offering results

   24h Move

   +1.4%

   Oversubscribed rights offering with expected gross proceeds around $62M.

2. Dec 02

   Monthly distribution

   24h Move

   -2.1%

   Declared $0.45 January 2026 distribution largely estimated as return of capital.

3. Nov 07

   Rights offer & payout

   24h Move

   -3.3%

   Announced rights offering terms plus December $0.45 distribution and estimated special gains.

4. Sep 02

   Quarterly distributions

   24h Move

   -0.0%

   Declared $0.45 monthly distributions for Sep–Nov 2025 with ROC expectation.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

regulated investment company, long-term capital gain, closed-end management investment company, net asset value, +2 more

6 terms

regulated investment company regulatory

"meet its 2025 distribution requirements as a regulated investment company for U.S. federal income tax purposes"

A regulated investment company is a type of pooled investment (like a mutual fund or ETF) that meets specific tax-law rules allowing it to pass most income, gains and losses directly to shareholders instead of being taxed at the company level. For investors this matters because it affects how distributions are taxed, how often income is paid, and the overall net return—think of it like a collective account that funnels earnings straight to owners rather than keeping profits inside a separate corporate layer.

long-term capital gain financial

"It is estimated that 100% of the special distribution will consist of long-term capital gain."

A long-term capital gain is the profit you make from selling an investment, like stocks or property, after holding onto it for more than a year. It matters because these gains are often taxed at a lower rate than quick profits, encouraging people to invest and keep their investments longer.

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.

View in glossary

discount to their net asset value financial

"closed-end funds often trade at a discount to their net asset value."

When a fund’s market price is lower than the value of the assets it owns, it is said to trade at a “discount to net asset value.” Think of buying a grocery basket for less than the receipts say it’s worth — the gap shows how much less investors are paying than the sum of the fund’s holdings. For investors this signals either a potential bargain if the gap narrows, or underlying worries about management, liquidity, or future returns.

forward-looking statements regulatory

"This press release contains certain statements that may include "forward-looking statements" within the meaning"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DALLAS, Dec. 19, 2025 /PRNewswire/ -- The NXG Cushing® Midstream Energy Fund (NYSE: SRV) (the "Fund") declared a special distribution of $2.14 per common share.  This special distribution will be payable to common shareholders pursuant to the table below:

Record Date	Ex-Dividend Date	Payment Date	Distribution Amount
December 29, 2025	December 29, 2025	December 31, 2025	$2.14

This special distribution is in addition to the Fund's previously announced December distribution of $0.45 per share. This special distribution is being paid to allow the Fund to meet its 2025 distribution requirements as a regulated investment company for U.S. federal income tax purposes. 

It is estimated that 100% of the special distribution will consist of long-term capital gain. The sources the distribution are only estimates and are provided to you pursuant to regulatory requirements and are not being provided for tax reporting purposes. The final determination of such sources will be made and reported to shareholders in early 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 a distribution may differ substantially from this 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-302647305.html

SOURCE NXG Investment Management

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the SRV special distribution amount and payment date?

SRV declared a $2.14 special distribution per share, payable on December 31, 2025 to shareholders of record on December 29, 2025.

Will the SRV special distribution be taxable and how is it characterized?

The fund estimates the special distribution will be 100% long-term capital gain, but the final tax characterization will be reported in early 2026.

How does the SRV special distribution relate to the December regular distribution?

The $2.14 special distribution is in addition to the previously announced December distribution of $0.45 per share.

What record date must SRV shareholders meet to receive the special distribution?

Shareholders must be on the SRV shareholder register as of the record date December 29, 2025 to receive the special distribution.

Why is SRV paying a special distribution for 2025?

The fund stated the special distribution helps it meet 2025 distribution requirements for qualification as a regulated investment company for U.S. federal income tax purposes.