Company: SRV
Filing Date: 2025-11-17
Form Type: 424B2
Source: 0001398344-25-021029
Chunk: 134

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-11-17
Form: 424B2
Chunk 134
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 In addition,
the minimum amounts that must be distributed in any year to avoid the excise tax will be increased or decreased to reflect any under-distribution
or over-distribution, as the case may be, from previous years. While the Fund intends to distribute any income and capital gain in the
manner necessary to minimize imposition of the 4% federal excise tax, there can be no assurance that sufficient amounts of the Fund’s
taxable income and capital gains will be distributed to avoid entirely the imposition of the tax. In that event, the Fund will be liable
for the tax only on the amount by which it does not meet the foregoing distribution requirement.

Dividends and distributions
will be treated as paid during the calendar year if they are paid during the calendar year or declared by the Fund in October, November
or December of the year, payable to Common Shareholders of record on a date during such a month and paid by the Fund during January of
the following year. Any such dividend or distribution paid during January of the following year will be deemed to be received by Common
Shareholders on December 31 of the year the dividend or distribution was declared, rather than when the dividend or distribution
is actually received.

If the Fund were unable to satisfy
the 90% distribution requirement or otherwise were to fail to qualify as a RIC in any year, it would be taxed on all of its taxable income
in the same manner as an ordinary corporation and distributions to Common Shareholders would not be deductible by the Fund in computing
its taxable income.

To qualify again to be taxed
as a RIC in a subsequent year following the Fund’s failure to qualify as a RIC, the Fund would be required to distribute to its
Common Shareholders its accumulated earnings and profits attributable to non-RIC years. In addition, if the Fund failed to qualify as
a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, the Fund would be required
to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss
that would have been realized if the Fund had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized
for a period of five years.

Gain or loss on the sale of
securities by the Fund will generally be long-term capital gain or loss if the securities have been held by the Fund for more than