Company: SRV
Filing Date: 2025-11-17
Form Type: 424B2
Source: 0001398344-25-021029
Chunk: 35

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-11-17
Form: 424B2
Chunk 35
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 with the issuance of the Rights pursuant to the Offer.

Except as provided in the following sentence, the basis
of a Right received by a Record Date Shareholder will be zero and the basis of the Common Share with respect to which the Right was issued
(the “Old Common Share”) will remain unchanged. The Record Date Shareholder must allocate a portion of the basis of the Old
Common Share to the Right in proportion to their respective fair market values on the date of distribution if (i) either (a) the fair
market value of the Right on the date of distribution is at least 15% of the fair market value of the Old Common Share on that date, or
(b) the Record Date Shareholder affirmatively elects (in the manner set out in Treasury regulations) to allocate to the Right a portion
of the basis of the Old Common Share and (ii) the Right does not expire unexercised in the hands of the Record Date Shareholder (i.e.,
the Record Date Shareholder either exercises or sells the Right following its issuance).

The basis of a Right purchased in the market will generally
be its purchase price.

The holding period of the Rights received in the Offer
will include the Record Date Shareholder’s holding period for the Common Shares with respect to which the Rights were issued.

Expiration of the Rights. Record Date Shareholders
who receive Rights in the Offer with respect to their Common Shares and who allow such Rights to expire unexercised will not recognize
any gain or loss, and no adjustment will be made to the basis of the holder’s Common Shares.

If a Right that has been purchased in the market expires
unexercised, the holder will recognize a loss equal to the basis of the Right. If the Right was held as a capital asset, loss on the expiration
of the Right generally will be a capital loss. The deductibility of capital losses is subject to a number of limitations under the Code.

Sale of the Rights. Upon the sale of a Right,
the seller will recognize gain or loss equal to the difference between the amount realized on the sale and the seller’s basis in
the Right. Any gain or loss on the sale of a Right will be capital gain or loss if the Right is held as a capital asset (which in the
case of Rights issued to Record Date Shareholders will depend on whether the Old Common Share is held as a capital asset), and will be
a long-term capital gain or loss if the holding period of the Right, as