Nxg Cushing Midstream Energy Fund launches rights offering for up to 1.56 million shares

NXG Cushing Midstream Energy Fund (NYSE:SRV) announced Monday that it has launched a transferable rights offering, allowing shareholders of record as of the close of business on November 17 to subscribe for up to 1,555,870 common shares of beneficial interest. The fund, which currently has a market capitalization of approximately $187 million and trades at $43.20 per share, is known for its substantial 12.6% dividend yield.

According to a statement based on a Securities and Exchange Commission filing, each shareholder will receive one right for every common share held on the record date. Holders can purchase one new common share for every three rights they own. Shareholders who fully exercise their rights may also subscribe, subject to limitations and allotment, for additional shares that remain unsubscribed. InvestingPro data shows SRV has maintained dividend payments for 19 consecutive years and has raised its dividend for 3 consecutive years, making it potentially attractive for income-focused investors.

Shareholders with fewer than three common shares as of the record date are entitled to subscribe for one full common share in the offering.

The offering is being conducted under a prospectus supplement dated November 17, 2025, and an accompanying prospectus dated November 12, 2025, both of which are part of the fund’s effective shelf registration statement on Form N-2 filed with the SEC.

In connection with the offering, the fund entered into a dealer manager agreement with Cushing Asset Management, doing business as NXG Investment Management, and UBS Securities LLC. The fund also signed agreements with Equiniti Trust Company, LLC as subscription agent and EQ Fund Solutions, LLC as information agent, both dated November 17, 2025.

A legal opinion regarding the offering from Skadden, Arps, Slate, Meagher & Flom LLP has been filed as part of the SEC submission.

NXG Cushing Midstream Energy Fund is organized in Delaware and its shares are listed on the New York Stock Exchange under the ticker NYSE:SRV.

All information is based on a press release statement filed with the Securities and Exchange Commission.

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