NXG Cushing® Midstream Energy Fund (NYSE: SRV) Announces the Preliminary Results of its Rights Offering

NXG Cushing Midstream Energy Fund (NYSE: SRV) announced preliminary results of its transferable rights offering that ran from Nov 17, 2025 to Dec 11, 2025.

Rhea-AI Summary

NXG Cushing Midstream Energy Fund (NYSE: SRV) announced preliminary results of its transferable rights offering that ran from Nov 17, 2025 to Dec 11, 2025. Rights holders could subscribe for up to 1,555,870 common shares at a subscription price of $39.89 per share, set at 92.5% of NAV on the Expiration Date. The Offer was oversubscribed. Gross proceeds are expected to be approximately $62,000,000. Common shares will be issued promptly after receipt of shareholder payments and completion of the pro‑rata allocation for over‑subscriptions. The Fund intends to invest net proceeds in accordance with its investment objective and policies.

Positive

• Gross proceeds approximately $62,000,000
• Offer was oversubscribed
• Subscription price set at $39.89 (92.5% of NAV)

Negative

• Issued 1,555,870 shares may dilute existing shareholders
• Subscription price at 92.5% of NAV implies a discount to NAV

Argus Dec 12 session

+1.41% close to close Open Argus

Details

News Market Reaction – SRV

On Dec 12, the day this news came out, SRV closed 1.41% above the previous close.

Data tracked by StockTitan Argus for the Dec 12 session.

Market Context

This announcement reports that SRV’s transferable rights offering was oversubscribed, allowing subsc...

Analysis

This announcement reports that SRV’s transferable rights offering was oversubscribed, allowing subscription for up to 1,555,870 new shares at $39.89 and targeting gross proceeds of $62,000,000. Earlier disclosures on the same offering and regular distributions provide context for an active capital plan. Investors may watch how quickly and where the net proceeds are invested relative to the fund’s stated midstream energy objective.

Key Figures

Maximum new shares: 1,555,870 shares Par value: $0.001 per share Subscription price: $39.89 per share +5 more

Maximum new shares

1,555,870 shares

Aggregate common shares offered in rights offering

Par value

$0.001 per share

Par value of common shares in the fund

Subscription price

$39.89 per share

Rights offering subscription price per common share

NAV discount

92.5% of NAV

Subscription price set as percentage of NAV on Expiration Date

Gross proceeds

$62,000,000

Expected gross proceeds from the rights offering

Pre-news price

$39.75

Share price before publication on 2025-12-12

52-week range

$34.2378–$50.6099

52-week low and high before this announcement

Market cap

$183,688,178

Market capitalization prior to the news

Historical Context

3 past events · Latest: Dec 02

3 events

1. Dec 02

   Distribution announcement

   24h Move

   -2.1%

   Announced January 2026 monthly distribution of $0.45 with return-of-capital mix.

2. Nov 07

   Rights offering terms

   24h Move

   -3.3%

   Detailed transferable rights offering terms and special capital gains estimates.

3. Sep 02

   Distribution schedule

   24h Move

   -0.0%

   Set $0.45 monthly distributions for September, October, and November 2025.

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

Key Terms

transferable rights offering, rights offering, net asset value, over-subscription privilege, +1 more

5 terms

transferable rights offering financial

"announced the preliminary results of its transferable rights offering (the "Offer")"

A transferable rights offering is a company raising money by giving existing shareholders tradable tokens called “rights” that let them buy new shares at a set price. Think of it like a coupon that shareholders can either use to buy discounted stock, sell to someone else, or let expire; it matters to investors because exercising preserves ownership percentage while selling can provide cash, and the overall offering can dilute share value for those who do nothing.

rights offering financial

"announced the preliminary results of its transferable rights offering (the "Offer")"

A rights offering is a way for a company to raise additional money by giving existing shareholders the opportunity to buy more shares at a discounted price before they are offered to the public. It’s similar to a special sale where current owners get the first chance to buy extra items at a lower cost, allowing them to increase their investment if they choose. This process matters to investors because it can affect the value of their holdings and their ability to buy new shares at favorable terms.

View in glossary

net asset value financial

"92.5% of the Fund's net asset value ("NAV") per Common Share"

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

over-subscription privilege financial

"completion of the pro-rata allocation of Common Shares in respect of the over­subscription privilege."

An over-subscription privilege is a feature of a share offering that lets existing investors request more shares than their initial entitlement, with any extra allocation given only if other investors do not take their full allotment. It matters because it gives shareholders a chance to increase their stake and avoid losing ownership percentage, much like ordering extra slices at a party in case others pass—however, receiving the extras is not guaranteed.

prospectus regulatory

"This document is not an offering, which can only be made by a prospectus."

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

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

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DALLAS, Dec. 12, 2025 /PRNewswire/ -- The NXG Cushing^® Midstream Energy Fund (NYSE: SRV) (the "Fund") announced the preliminary results of its transferable rights offering (the "Offer"). The Offer commenced on November 17, 2025, and expired on December 11, 2025 (the "Expiration Date"). The Offer entitled rights holders to subscribe for up to an aggregate of 1,555,870 of the Fund's common shares of beneficial interest, par value $0.001 per share ("Common Shares"). The subscription price was $39.89 per Common Share and was determined based upon 92.5% of the Fund's net asset value ("NAV") per Common Share at the close of trading on the New York Stock Exchange on the Expiration Date. The Offer was oversubscribed. Common Shares will be issued promptly after receipt of all shareholder payments and completion of the pro-rata allocation of Common Shares in respect of the over­subscription privilege.

Gross proceeds of the Offer are expected to be approximately $62,000,000. The Fund intends to invest the net proceeds of the Offer in accordance with its investment objective and policies.

This document is not an offer to sell any securities and is not soliciting an offer to buy any securities in any jurisdiction where the offer or sale is not permitted. This document is not an offering, which can only be made by a prospectus. Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. Such information, including other information about the Fund, can be found on file with the Securities and Exchange Commission and should be read carefully before investing.

About NXG Investment Management

The Investment Adviser is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts. Cushing Asset Management, LP is doing business as NXG Investment Management, providing Next Generation investment strategies to investors seeking long-term growth in companies focused on a clean and sustainable future as well as traditional and transformational infrastructure companies.

About NXG Cushing^® Midstream Energy Fund

The Fund is a non-diversified, closed-end management investment company with an investment objective to obtain 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 Managed Assets 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 provide midstream energy services, 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 Common Shares are traded on the NYSE under the symbol "SRV."

The Fund utilizes leverage as part of its investment strategy. There can be no assurance that the Fund will achieve its investment objective. 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 in which the Fund invests. 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.

For information about the Fund, please contact your financial advisor.

Contact:

Blake Nelson
NXG Investment Management
214-692-6334
www.nxgim.com 

NOT FDIC INSURED                      NO BANK GUARANTEE               MAY LOSE VALUE

View original content:https://www.prnewswire.com/news-releases/nxg-cushing-midstream-energy-fund-nyse-srv-announces-the-preliminary-results-of-its-rights-offering-302639788.html

SOURCE NXG Investment Management

FAQ

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

What were the preliminary results of SRV's rights offering that expired on December 11, 2025?

The Offer was oversubscribed; holders could subscribe for up to 1,555,870 shares at $39.89 per share.

How much gross capital did SRV expect to raise from the rights offering?

Gross proceeds are expected to be approximately $62,000,000.

What was the SRV subscription price and how was it determined on December 11, 2025?

The subscription price was $39.89, equal to 92.5% of SRV's NAV per share at close on the Expiration Date.

When will SRV issue the common shares from the rights offering?

Common shares will be issued promptly after receipt of shareholder payments and completion of the pro‑rata allocation for over‑subscriptions.

How will SRV use the net proceeds from the rights offering?

The Fund intends to invest the net proceeds in accordance with its investment objective and policies.

What does SRV's rights offering mean for existing shareholders?

The offering increases outstanding shares (1,555,870 issued), which may dilute existing shareholders absent full pro‑rata participation.