Company: SRV
Filing Date: 2025-01-14
Form Type: 424B2
Source: 0001398344-25-000635
Chunk: 44

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-01-14
Form: 424B2
Chunk 44
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 As the general partner increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where it receives 50% of every incremental dollar distributed by the MLP. These incentive distributions encourage the general partner to increase the partnership’s cash flow and raise the quarterly cash distribution by pursuing steady cash flow investment opportunities, streamlining costs and acquiring assets. Such results benefit all security holders of the MLP.

Equity securities issued by MLPs typically consist of common and subordinated units (which represent the limited partner or member interests) and a general partner or managing member interest.

| ● | Common                                                                                               
 Units. The common units of many MLPs are listed and traded on national securities exchanges,         
 including the NYSE, the NYSE American and the NASDAQ Stock Market (the “NASDAQ”).                    
 The Fund will typically purchase such common units through open market transactions and underwritten 
 offerings, but may also acquire common units through direct placements and privately negotiated      
 transactions. Holders of MLP common units typically have very limited control and voting             
 rights. Holders of such common units are typically entitled to receive the MQD, including            
 arrearage rights, from the issuer. Generally, an MLP must pay (or set aside for payment)             
 the MQD to holders of common units before any distributions may be paid to subordinated unit         
 holders. In addition, incentive distributions are typically not paid to the general partner          
 or managing member unless the quarterly distributions on the common units exceed specified           
 threshold levels above the MQD. In the event of a liquidation, common unit holders are intended      
 to have a preference to the remaining assets of the issuer over holders of subordinated units.       
 Master limited partnerships also issue different classes of common units that may have different     
 voting, trading, and distribution rights. The Fund may invest in different classes of common         
 units.                                                                                               |

| ● | Subordinated                                                                                      
 Units. Subordinated units, which, like common units, represent limited partner or member          
 interests, are not typically listed on an exchange or publicly traded. The Fund will typically    
 purchase outstanding subordinated units through negotiated transactions directly with holders     
 of such units or newly-issued subordinated units directly from the issuer. Holders of such        
 subordinated units are generally entitled to receive a distribution only after the MQD and        
 any arrearages from prior quarters have been paid to holders of common units. Holders of          
 subordinated units typically have the