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

The NXG Cushing® Midstream Energy Fund (NYSE: SRV) has recently announced monthly distributions of $0.45 per common share for December 2024 and January 2025. These distributions, totaling $0.90 per share, represent a 2.2% yield based on the Fund's recent market price of $41.80. The Fund's consistent payouts reflect its ability to generate income and return capital to shareholders, aligning with its investment objective of obtaining 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 at least 80% of its net assets, plus any borrowings for investment purposes, in a portfolio of midstream energy investments. These investments offer economic exposure to securities of midstream energy companies, which provide essential services in the energy infrastructure sector, including gathering, transporting, processing, and distributing natural resources. The Fund's distributions reflect the cash flows generated by these midstream energy companies, which are then distributed to investors.

The Fund's distributions are expected to be paid on December 31, 2024, and January 31, 2025, respectively. The preliminary tax status indicates that approximately 0% of the December distribution and 100% of the January distribution will be treated as a return of capital. This means that investors will not be taxed on these amounts until they exceed the fund's initial investment, potentially enhancing their after-tax returns. However, the final tax status may differ, and investors should consult with their tax advisors for personalized guidance.

The Fund's distributions align with its historical payouts, with monthly distributions ranging from $0.40 to $0.45 per share in 2024 and averaging $0.38 per share in 2023. This consistency in payouts indicates that the Fund is generating sufficient cash flows to maintain and potentially grow its distributions, which is a positive sign for investors seeking income and capital appreciation.

The Fund's distributions have a positive impact on its share price, as they indicate the Fund's ability to generate income and return capital to shareholders. However, the actual impact on the Fund's share price will depend on various factors, including market conditions, investor sentiment, and the Fund's overall performance.

In conclusion, the NXG Cushing® Midstream Energy Fund's recent distributions reflect its consistent ability to generate income and return capital to shareholders. The Fund's stable payouts align with its investment objectives and strategy, providing investors with opportunities for income and growth. As the Fund continues to generate cash flows from its midstream energy investments, investors can expect consistent distributions and potential capital appreciation.