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

Rhea-AI Summary

NXG Cushing Midstream Energy Fund (NYSE: SRV) declared a $0.45 per common share monthly distribution for January 2026. The distribution has a record and ex-dividend date of January 16, 2026 and a payment date of January 30, 2026. The Fund currently estimates that approximately 100% of the distribution will be treated as a return of capital, subject to final determination of earnings and profits after the 2026 calendar year.

The Fund warns the final tax treatment may differ and that the Board may defer payment if required to comply with law or to preserve solvency. The Fund invests at least 80% of net assets in midstream energy investments and trades under the symbol SRV.

Positive

• Declared monthly distribution of $0.45 per common share
• Distribution payment scheduled for January 30, 2026

Negative

• Fund estimates ~100% of distribution as return of capital
• Final tax treatment not determined until early 2027
• Board may defer payment to preserve solvency or comply with law

Key Figures

Monthly distribution $0.45 per share Declared for January 2026

Record / Ex-dividend date 01/16/2026 January 2026 distribution timing

Payment date 01/30/2026 Scheduled payout for January 2026 distribution

Return of capital estimate 100% Estimated tax character of January 2026 distribution

Midstream allocation target At least 80% of net assets Normal market conditions investment policy

Midstream definition threshold At least 50% Portion of company metrics tied to midstream services

52-week high $50.6099 Pre-news trading range context

Current price vs high -21.46% Distance from 52-week high before this announcement

Market Reality Check

$40.31 Last Close

Volume Volume 124,179 is 1.68x the 20-day average of 73,779 ahead of the January distribution. high

Technical Shares at $39.75 are trading below the 200-day MA of $42.18 and 21.46% under the 52-week high.

Peers on Argus

SRV slipped 0.63% while peers were mixed: NXG up 0.81%, GF up 1.54%, MAV flat, and EHI and OPP down 0.16% and 0.63% respectively, indicating both fund- and sector-level cross-currents.

Common Catalyst Closed-end fund distribution activity, as NXG also announced distributions on the same day.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 02	Distribution announcement	Neutral	-2.1%	Declared $0.45 January 2026 distribution with 100% return-of-capital estimate.
Nov 07	Rights offering & dist.	Neutral	-3.3%	Announced transferable rights offering plus December $0.45 distribution and capital gains.
Sep 02	Distribution schedule	Neutral	-0.0%	Declared $0.45 monthly distributions for Sep–Nov 2025 as midstream-focused fund.

Pattern Detected

Recent distributions and capital actions have often been followed by modest to moderate share price declines.

Recent Company History

Over the last few months, SRV has repeatedly highlighted monthly distributions of $0.45 per share and a focus on midstream energy investments. A November rights offering with an associated capital gains update coincided with a larger -3.26% move, while earlier distribution announcements saw reactions from nearly flat to about -2%. Today’s news extends the same $0.45 payout pattern into January 2026 with an estimated 100% return of capital, fitting into a broader income-focused but price-sensitive narrative.

Market Pulse Summary

This announcement extended SRV’s pattern of monthly distributions, declaring a $0.45 per share payout for January 2026 with an estimated 100% treated as return of capital. The fund reiterated that final tax character would be determined after fiscal results are known and that payments could be deferred to preserve solvency. Historically, SRV has paired such distributions with a mandate to keep at least 80% of net assets in midstream energy investments, making NAV trends and coverage metrics important items to monitor.

Key Terms

return of capital financial

"The return of capital is the return of a portion of the shareholder's original investment."

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.

net asset value financial

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

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.

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.

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. Not financial advice.

DALLAS, Dec. 2, 2025 /PRNewswire/ -- The NXG Cushing® Midstream Energy Fund (NYSE: SRV) (the "Fund") declared a monthly distribution of $0.45 per common share for January 2026.  This monthly distribution will be payable to common shareholders pursuant to the table below:

Record Date	Ex-Dividend Date	Payment Date	Distribution Amount	Return of Capital Estimate1
1/16/26	1/16/26	1/30/26	$0.45	100 %

¹The return of capital is the return of a portion of the shareholder's original investment. 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 the source of the Fund's distributions 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 companies.

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-302629752.html

SOURCE NXG Investment Management

FAQ

What distribution did NXG Cushing Midstream Energy Fund (SRV) declare for January 2026?

The Fund declared a $0.45 per share monthly distribution for January 2026.

When is the SRV ex-dividend, record, and payment date for the January 2026 distribution?

Record and ex-dividend date: January 16, 2026; payment date: January 30, 2026.

How will the January 2026 SRV distribution be treated for tax purposes?

The Fund currently estimates approximately 100% of the distribution will be treated as a return of capital, subject to final 2026 earnings and profits.

Could the SRV Board delay the January 2026 distribution payment?

Yes; the Board may defer payment if required to comply with law or to ensure the Fund's solvency.

What is the Fund's investment focus and NYSE ticker for investors?

The Fund targets midstream energy investments (≥80% policy) and trades under NYSE: SRV.

When will shareholders receive the final tax characterization of SRV distributions for 2026?

The Fund expects to report the final source and tax status of 2026 distributions to shareholders in early 2027.