Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 22

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 22
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 The distributions
paid by the Fund for any particular month may be more or less than the amount of net investment income for that monthly period.

In any given year, there
can be no guarantee the Fund’s investment returns will exceed the amount of distributions. The Fund may distribute more than the
entire amount of the net investment income earned in a particular period, in which case all or a portion of a distribution may be a return
of capital. Return of capital is the return of a portion of the shareholder’s original investment up to the amount of the Common
Shareholder’s tax basis in their Common Shares, which would reduce such tax basis. Although a return of capital may not be taxable,
it will generally increase the Common Shareholder’s potential gain, or reduce the Common Shareholder’s potential loss, on
any subsequent sale or other disposition of Common Shares. The Fund’s distributions have historically included, and may in the future include, a significant portion of return of capital. For the fiscal year ended November 30, 2024, the Fund’s distributions were comprised of approximately 30% ordinary income and 70% return of capital. Accordingly, shareholders should not assume that the source of a distribution from the Fund is net income or profit, and the Fund’s distributions should not be used as a measure of performance or confused with yield or income.

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Alternatively, the Fund may
also distribute less than its net investment income in a particular period. The undistributed net investment income may be available to
supplement future common share distributions. Undistributed net investment income is included in the Common Shares’ net asset value,
and, correspondingly, distributions from net investment income will reduce the Common Shares’ net asset value.

With each distribution that
does not consist solely of net investment income, the Fund will issue a notice to shareholders that will provide estimated information
regarding the amount and composition of the distribution. The amounts and sources of distributions reported in each notice will be estimated,
are likely to change over time and are not provided for tax reporting purposes. The final determination of such amounts will be made and
reported to shareholders after the end of the calendar year when the Fund determines its earnings and profits for the year. The actual
amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Fund’s investment experience during
its full fiscal year and may be subject to changes based on tax regulations. The Fund will send each shareholder a Form 1099-DIV
for