Western Midstream Releases 2025 Schedule K-3 for Unitholders with International Tax Obligations

HOUSTON – Western Midstream Partners, LP (NYSE: WES) announced on July 1, 2026, that its Schedule K-3 for the 2025 tax year is now available online. The document provides detailed information on items of international tax relevance, which is necessary for a specific subset of the company’s unitholders to complete their federal income tax returns.

The release of this form is a key compliance step for the Houston-based master limited partnership (MLP), which owns and operates midstream energy assets across Texas, New Mexico, Colorado, Utah, and Wyoming. Unitholders can now access their personalized Schedule K-3 through the company’s tax support portal, www.taxpackagesupport.com/westernmidstream.

According to the company’s announcement, the information on the Schedule K-3 is primarily intended for a limited group of investors. This includes foreign unitholders, U.S. unitholders who are computing a foreign tax credit, and certain corporate or partnership unitholders with specific international reporting requirements. For the majority of individual U.S. investors in the partnership, this form may not be necessary for their tax filing.

The Schedule K-3 is a relatively recent addition to the landscape of partnership tax reporting. It was finalized by the Internal Revenue Service to accompany the Schedule K-1, which reports each partner's share of a partnership's income, deductions, and credits. The K-3 was designed to standardize the reporting of complex international tax information, such as a partner’s share of foreign taxes paid or accrued, foreign-source income, and details related to global intangible low-taxed income (GILTI).

Prior to the form's introduction, partnerships often provided this information in varying formats as attachments or footnotes to the K-1, creating inconsistencies and potential compliance challenges for partners. The Schedule K-3 aims to provide this data in a clear, structured format that corresponds directly with other international tax forms, like Form 1116 for the Foreign Tax Credit.

As an MLP, Western Midstream is structured as a publicly traded partnership. This means its investors, known as unitholders, are treated as partners for tax purposes. Instead of receiving a Form 1099-DIV for dividends, they receive a Schedule K-1 (and now, if applicable, a K-3) detailing their pro-rata share of the partnership’s financial results. WES is engaged in gathering, processing, and transporting natural gas, crude oil, and related products, and its operations can involve activities that generate foreign-source income or foreign tax credits, necessitating the K-3 disclosures.

The timing of the announcement on July 1, 2026, for the 2025 tax year presents a potential complication for affected unitholders. The partnership’s investor relations site notes that its 2025 Schedule K-1 forms were scheduled to be available by March 11, 2026. The subsequent release of the K-3 several months later means that affected investors who filed their returns by the April deadline, or who have already prepared their returns for the October extension deadline, may need to amend their filings.

Amending a tax return to incorporate new information from a late-arriving form can be a complex and potentially costly process for both individuals and businesses. The company encourages unitholders to review the information on the form and consult with a tax advisor to determine if it is applicable to their specific filing needs. For those who require a copy, Western Midstream has also provided a toll-free number, 833-618-2034, to request an electronic version via email.

This process is standard among large MLPs with international dealings. For example, Energy Transfer LP (NYSE: ET), another major player in the midstream sector, also provides both K-1 and K-3 schedules to its unitholders, with its 2025 K-1s having been made available in March 2026. The staggered release of these forms highlights an ongoing challenge in the partnership tax compliance ecosystem, where the complexity of calculating final international tax items can delay their reporting relative to domestic information.

In our experience, the complexities of partnership taxation, especially for entities like MLPs with international footprints, create significant compliance hurdles for investors. The delayed availability of a crucial document like the Schedule K-3 is a prime example of a situation that can force taxpayers to file amended returns, a process that consumes both time and resources. It underscores the fact that tax compliance is not a single event in April but an ongoing process that requires careful monitoring. For business owners and investors, navigating these requirements goes far beyond simply receiving a form; it involves understanding the data, integrating it correctly into a complex return, and responding to new information as it becomes available. Our firm’s tax preparation and compliance services are specifically designed to manage these intricate scenarios, ensuring that filings are accurate and timely, even when essential data arrives outside of the typical tax season. For professional assistance with complex partnership tax reporting, business owners and investors can contact C&S Finance Group LLC at csfinancegroup.com.

Looking ahead, unitholders in publicly traded partnerships should remain aware of the distinct timelines for receiving different components of their tax packages. As global business operations become more integrated, the need for detailed international tax reporting is expected to grow, making the Schedule K-3 an increasingly important document for affected investors to anticipate and manage during tax season.