Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 21

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 21
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 In addition to the economic dilution described above, if a Common Shareholder does not exercise all of their rights, the Common Shareholder will incur voting dilution as a result of this rights offering. This voting dilution will occur because the Common Shareholder will own a smaller proportionate interest in the Fund after the rights offering than prior to the rights offering. There is a risk that changes in market conditions may result in the underlying Common Shares purchasable upon exercise of the subscription rights being less attractive to investors at the conclusion of the subscription period. This may reduce or eliminate the value of the subscription rights. If investors exercise only a portion of the rights, the number of Common Shares issued may be reduced, and the Common Shares may trade at less favorable prices than larger offerings for similar securities. Subscription rights issued by the Fund may be transferable or non-transferable rights. In a non-transferable rights offering, Common Shareholders who do not wish to exercise their rights will be unable to sell their rights. In a transferrable rights offering, the Fund will use its best efforts to ensure an adequate trading market for the rights; however, investors may find that there is no market to sell rights they do not wish to exercise.

11

<div align='center'>MANAGEMENT
OF THE FUND</div>

The information contained
under the heading “Additional Information (Unaudited)—Management of the Fund” in the Fund’s Annual Report is incorporated
herein by reference.

<div align='center'>NET
ASSET VALUE</div>

The information contained
under the heading “Additional Information (Unaudited)—Net Asset Value” in the Fund’s Annual Report is incorporated
herein by reference.

<div align='center'>DISTRIBUTIONS</div>

The Fund intends to pay substantially
all of its net investment income to Common Shareholders through monthly distributions. In addition, the Fund intends to distribute any
net long-term capital gains to Common Shareholders at least annually. The Fund expects that distributions paid on the Common Shares will
consist primarily of (i) investment company taxable income, which includes, among other things, ordinary income, net short-term capital
gain and income from certain hedging and interest rate transactions, (ii) net capital gain (which is the excess of net long-term capital
gain over net short-term capital loss), and/or (iii) return of capital.

The Fund’s net investment
income can vary significantly over time; however, the Fund seeks to maintain a more stable monthly distribution per share.