Company: SRV
Filing Date: 2025-11-17
Form Type: 424B2
Source: 0001398344-25-021029
Chunk: 136

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-11-17
Form: 424B2
Chunk 136
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 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.

If the Fund invests in foreign
securities, its income from such securities may be subject to withholding and other non-U.S. taxes. The Fund will not be eligible to elect
to “pass through” to Common Shareholders of the Fund the ability to use the foreign tax deduction or foreign tax credit for
foreign taxes paid with respect to qualifying taxes.

Taxation of U.S. Shareholders

For purposes of this discussion,
a “U.S. shareholder” (or in this section, a “shareholder”) is a beneficial owner of Common Shares which is for
U.S. federal income tax purposes (1) an individual who is a citizen or resident of the United States, (2) a corporation (or other entity
taxable as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States