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NXG Cushing Midstream Energy Fund Announces Offering and Distribution Updates

The NXG Cushing® Midstream Energy Fund (NYSE: SRV) has made several key announcements impacting its shareholders. On November 7, 2025, the fund's Board of Trustees approved the terms for a rights offering, allowing current shareholders an opportunity to purchase additional shares at a discounted rate.

Rights Offering Details

According to the announcement, the rights offering is directed at holders of common shares as of the record date, November 17, 2025. Each common shareholder will receive one transferable right for every share owned, entitling them to purchase one new common share for every three rights held. Those with fewer than three shares will still be eligible to buy one additional share. The offering aims to enhance the fund's investment capital, aligning with its objective to maximize after-tax returns through capital appreciation and income generation.

This rights offering is not only designed to give existing common shareholders a favorable opportunity but is also viewed as a strategic move to leverage emerging investment opportunities. The rights are anticipated to be traded on the NYSE under the symbol "SRV RT" once the offering period begins, which is expected to last until December 11, 2025, unless extended.

The subscription price for new shares will be determined on the expiration date, set at 95% of the average trading price from the previous four days, with a floor price of 92.5% of the fund's net asset value per share. This calculated approach demonstrates the board's commitment to balancing cost and opportunity for its shareholders.

Monthly Distribution Announcement

In addition to the rights offering, NXG Cushing has declared a monthly distribution of $0.45 per common share for December 2025, payable on December 31, 2025. This distribution continues the fund's commitment to returning value to its shareholders and reflects its performance through the year. Notably, it has been reported that this amount will be sourced wholly from realized capital gains, marking a robust return strategy in the current market landscape.

The distribution serves as a significant part of the fund's engagement with its shareholders, ensuring consistent returns. Shareholders should note that the December distribution will not apply to shares acquired through the rights offering issued after the record date of December 2, 2025. Such conditions are vital for participants to understand in managing their investment timelines and expectations.

Capital Gains Update

As of October 31, 2025, the fund has estimated that a special distribution of long-term capital gains ranging from $10 million to $15 million will be needed, amounting to approximately 5% to 8% of its net asset value. With roughly 4.6 million common shares outstanding, this distribution could translate to a per share gain of $2.00 to $3.50. Post-offering, if all rights are subscribed, total shares may increase to about 6.2 million, adjusting the estimated per share gain to $1.50 to $2.50.

These figures serve as preliminary estimates subject to market fluctuations and should not influence individual investment decisions without proper consideration of the associated risks. The final per share amounts will be established closer to the distribution date and communicated to shareholders accordingly.

Conclusion

Overall, NXG Cushing Midstream Energy Fund is positioning itself strategically within the energy market, balancing the need for capital growth and shareholder returns. With the rights offering and clear communication regarding distributions, the fund seeks to enhance its asset base while ensuring consistent returns. Shareholders are encouraged to assess their investments and participate actively in the offering as outlined. For further details, subscriptions transactions, and updates, investors should consult the provided prospectuses and stay informed through official communications.