Andrea Mullins, a director at NXG Cushing Midstream Energy Fund (NYSE:SRV), recently acquired 150 common shares of the company. The shares were purchased at a price of $41.80 each, totaling approximately $6,270. This transaction was part of a rights offering that concluded on November 14, 2024. Following this acquisition, Mullins now holds 600 shares directly.
In other recent news, NXG Cushing Midstream Energy Fund has announced a significant rights offering. The energy investment fund has entered into several agreements related to the offering, which was launched following an announcement made via a prospectus supplement. The fund has entered into a dealer manager agreement with NXG Investment Management and UBS Securities LLC, which pertains to the issuance of transferable rights to existing shareholders. This allows them to subscribe for up to 1,004,176 new common shares.
Moreover, each shareholder will receive one right for each common share they own, enabling them to purchase one new common share for every three rights they possess. Additional shares can also be subscribed by shareholders who fully exercise their rights, subject to certain conditions and availability.
The fund has also entered into agreements with Equiniti Trust Company, LLC, and EQ Fund Solutions, LLC, to serve as the subscription and information agents for the rights offering. This offering is part of the fund's shelf registration statement previously filed with the Securities and Exchange Commission. The legal aspects of the offering are covered by an opinion from Skadden, Arps, Slate, Meagher & Flom LLP, which is also filed with the SEC.
InvestingPro Insights
The recent insider purchase by Andrea Mullins aligns with several key metrics and insights from InvestingPro. NXG Cushing Midstream Energy Fund (NYSE:SRV) currently boasts a substantial dividend yield of 12.17%, according to InvestingPro data. This high yield is consistent with one of the InvestingPro Tips, which notes that SRV "pays a significant dividend to shareholders." Moreover, the company has maintained dividend payments for 18 consecutive years, demonstrating a commitment to returning value to shareholders.
The fund's current market capitalization stands at $134.12 million, with a P/E ratio of 27.49. Despite the relatively high P/E ratio, SRV has shown strong performance, with a year-to-date price total return of 47.78% and a one-year return of 42.83%. This impressive performance is reflected in another InvestingPro Tip, which highlights SRV's "strong return over the last five years."
Investors considering SRV may find additional value in exploring the full range of InvestingPro Tips, which offer further insights into the fund's financial health and market position. InvestingPro lists 5 additional tips for SRV, providing a more comprehensive analysis for potential investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.