Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 68

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 68
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 is more limited), (iv) cause the Fund to recognize income or gain without
a corresponding receipt of cash, (v) adversely affect the time as to when a purchase or sale of stock or securities is deemed to occur,
(vi) adversely alter the characterization of certain complex financial transactions and (vii) produce income that will not qualify as
good income for purposes of the 90% annual gross income requirement described above. The Fund will monitor its transactions and may make
certain tax elections and may be required to borrow money or dispose of securities to mitigate the effect of these rules and prevent disqualification
of the Fund as a RIC.

Certain investment practices
could limit the Fund’s ability to make sufficient distributions to satisfy the Annual Distribution Requirement and to eliminate
the imposition of Fund-level income and excise taxes. For example, the MLPs in which the Fund intends to invest are expected to be treated
as partnerships for U.S. federal income tax purposes. The cash distributions received by the Fund from an MLP may not correspond to the
amount of income allocated to the Fund by the MLP in any given taxable year, and the amount of income allocated by an MLP to the Fund
may exceed the amount of cash received by the Fund from such MLP. In addition, certain other investments by the Fund may require the Fund
to recognize income or gains without a corresponding receipt of cash. Moreover, if the Fund utilizes leverage, it may be prevented by
1940 Act requirements or loan covenants from declaring and paying dividends in certain circumstances. For the foregoing reasons, among
others, the Fund may have difficulty making distributions to its Common Shareholders in the amounts necessary to satisfy the requirements
for maintaining its status as a RIC or avoiding U.S. federal income or excise taxes. Accordingly, the Fund may have to dispose of securities
under disadvantageous circumstances in order to generate sufficient cash to satisfy the distribution requirements.

The Fund expects that the income
derived by the Fund from the MLPs in which it invests will be Qualifying Income. If, however, an MLP in which the Fund invests is not
a Qualified Publicly Traded Partnership, the income derived by the Fund from such investment may not be Qualifying Income and, therefore,
could adversely affect the Fund’s status as a RIC. The Fund intends to monitor its investments in MLPs to prevent to disqualification
of the Fund as a RIC.

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If the Fund invests in