Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 40

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 40
---
 offer or for other valid purposes. Interest on any such
borrowings would increase the Fund’s expenses and reduce its net income.

There can be no assurance
that repurchases of the Fund’s Common Shares or tender offers, if any, will cause its Common Shares to trade at a price equal to
or in excess of their net asset value. Nevertheless, the possibility that a portion of the Fund’s outstanding Common Shares may
be the subject of repurchases or tender offers may reduce the spread between market price and net asset value that might otherwise exist.
Sellers may be less inclined to accept a significant discount in the sale of their Common Shares if they have a reasonable expectation
of being able to receive a price of net asset value for a portion of their Common Shares in conjunction with an announced repurchase program
or tender offer for the Fund’s Common Shares.

Although the Board of Trustees
believes that repurchases or tender offers generally would have a favorable effect on the market price of the Fund’s Common Shares,
the acquisition of Common Shares by the Fund will decrease its total assets and therefore will have the effect of increasing its expense
ratio and decreasing the asset coverage with respect to any preferred shares outstanding. Because of the nature of the Fund’s investment
objective, policies and portfolio, particularly its investment in illiquid or otherwise restricted securities, it is possible that repurchases
of Common Shares or tender offers could interfere with the Fund’s ability to manage its investments in order to seek its investment
objective. Further, it is possible that the Fund could experience difficulty in borrowing money or be required to dispose of portfolio
securities to consummate repurchases of or tender offers for Common Shares.

<div align='center'>22

U.S.
FEDERAL INCOME TAX CONSIDERATIONS</div>

The following is a discussion
of the U.S. federal income tax considerations generally applicable to the ownership and disposition of Common Shares of the Fund. A more
detailed discussion of the tax rules applicable to the Fund and its Common Shareholders can be found in the SAI that is incorporated by
reference into this Prospectus. This discussion is based upon current provisions of the Code, the Treasury regulations promulgated thereunder
and judicial and administrative authorities, all of which are subject to change or differing interpretations by the courts or the Internal
Revenue Service (“IRS”), possibly with retroactive effect. This discussion does not address any other U.S. federal tax considerations
(such as estate, gift or net investment taxes) or any state, local