Does Western Midstream issue a K-1?

Yes. WES is a publicly traded partnership (PTP), not a corporation. All unitholders receive a Schedule K-1 (Form 1065) instead of a 1099-DIV. Distributions are not dividends — they are partnership allocations that adjust your cost basis every year.

When is the WES K-1 available for 2025?

WES 2025 K-1 tax packages will be available online by March 11, 2026. Hard copies are mailed the following week. If your K-1 hasn't arrived by early April, file Form 4868 for an automatic extension.

Where do I download my WES K-1?

Download at taxpackagesupport.com/westernmidstream. You'll need your SSN and unit count as of December 31, 2025. Phone support: (833) 618-2034. Long-term holders who owned units under the old WES or WGP tickers prior to February 28, 2019 can also access historical K-1 data through the legacy entity at the same site.

I held Aris Water Solutions (ARIS) — do I now get a WES K-1?

Yes. WES acquired Aris Water Solutions on October 15, 2025. If you held ARIS shares through the merger, you now hold WES units and will receive a K-1. Your initial WES cost basis is determined by the merger exchange ratio (0.625 WES units per ARIS share, $25.00 cash, or a mix). Check Form 8937 on WES's investor relations page for the specific basis calculation.

How do WES distributions affect my cost basis?

WES distributes $3.64/unit annually ($0.910/quarter as of Q4 2025). Historically 70-85% of WES distributions are classified as return of capital, which directly reduces your cost basis. At that rate, basis erodes roughly $2.55-$3.09/unit per year. After 5 years, your IRS-adjusted basis may be 30-40% lower than your purchase price — while your broker still shows the original amount.

Do I need to file state taxes because I own WES?

Potentially. WES operates in Texas (no income tax), New Mexico, Colorado, Utah, and Wyoming (no income tax). Your K-1 state schedule allocates income to each state. Colorado and New Mexico are the key states to watch — Colorado has no de minimis threshold for nonresidents. Most small unitholders fall below filing thresholds in most states.

What happens if I confuse WES with OXY for tax purposes?

WES (Western Midstream Partners) is a partnership that issues a K-1. OXY (Occidental Petroleum) is a C-corporation that issues a 1099-DIV. They have completely different tax reporting despite Occidental being WES's majority owner. If you own both, you have two separate tax workflows.

What happens if I use my broker's cost basis when selling WES?

Your broker reports your original purchase price, but the IRS expects your K-1-adjusted basis which decreases each year from distributions. Using the wrong basis underreports your gain and can trigger an IRS CP2000 notice with back taxes, interest, and possible penalties.

Do I need to check Form 8937 if I acquired WES through the Aris merger?

Yes. If you acquired WES units through the Aris Water Solutions merger (October 2025), your initial cost basis is determined by the merger exchange ratio and your election (0.625 WES units per ARIS share, $25.00 cash, or a mix). Form 8937 on WES's investor relations page provides the specific basis calculation.

Does Colorado require a state tax filing for WES unitholders?

Colorado has no de minimis filing threshold for nonresidents. Any income allocated to Colorado on your WES K-1 state supplement technically requires a nonresident Colorado return. Check whether the allocated amount justifies the filing cost.

WES K-1 2025: Western Midstream Basis & Tax Guide

Yes, Western Midstream Partners (WES) issues a Schedule K-1 to all unitholders. WES is a publicly traded partnership, so distributions are reported via K-1 — not a 1099. WES 2025 K-1 tax packages will be available online by March 11, 2026.

By Lucas Andersen — Last updated March 6, 2026

When Does WES Release Its K-1?

WES 2025 K-1 tax packages will be available online by March 11, 2026. Hard copies are mailed the following week. Download at taxpackagesupport.com/westernmidstream. Phone support: (833) 618-2034.

WES Structure: From Western Gas Partners to Occidental’s MLP

Western Midstream Partners LP (NYSE: WES) gathers, processes, compresses, treats, and transports natural gas, NGLs, and produced water. WES was originally formed by Anadarko Petroleum as Western Gas Partners. When Occidental acquired Anadarko in 2019, WES came along. Occidental is the majority owner and general partner. Investors who held units prior to February 28, 2019 (under the old WES or WGP tickers) have historical K-1 data through the legacy entity at taxpackagesupport.com/westernmidstream. In early 2026, WES renegotiated Delaware Basin contracts with Occidental and ConocoPhillips, receiving $610M in WES units from Occidental in exchange for simplified fee structures.

The Aris Acquisition: New WES Unitholders From the ARIS Merger

On October 15, 2025, WES completed its acquisition of Aris Water Solutions, issuing ~26.6 million new common units and paying $415M cash. Thousands of former ARIS shareholders now hold WES units and are receiving a K-1 for the first time. If you acquired WES units through the Aris merger, your initial cost basis is determined by the merger exchange ratio and election (0.625 WES units per ARIS share, $25.00 cash, or a mix). Check Form 8937 on WES’s investor relations page for the specific basis calculation.

How WES Distributions Erode Your Cost Basis

Current distribution: $0.910/quarter, $3.64/year annualized (paid Feb 13, 2026 for Q4 2025). WES distributions have historically been 70–85% return of capital — verify against your actual K-1. Worked example: 200 units at $40 ($8,000 initial basis). At ~75% ROC, basis erodes roughly $2.80/unit per year. After 5 years, IRS-adjusted basis is approximately $5,200 — while your broker still shows $8,000. That’s a $2,800 gap (35%). If you sell at $50/unit ($10,000): broker reports $2,000 gain, IRS expects $4,800 gain with §751 ordinary income on the recapture portion.

§751 Recapture: The Tax Surprise When You Sell WES

WES owns billions in depreciable gathering systems, processing plants, and pipeline infrastructure. When you sell, cumulative depreciation is recaptured under IRC §751 as ordinary income (up to 37%). For positions held 5+ years, expect 30–50% of gain to be recharacterized as ordinary income. Your gain is calculated against your K-1-adjusted basis (not broker’s number), AND a portion is ordinary income.

State Tax Filing for WES Unitholders

WES operates in Texas (no income tax), New Mexico (low threshold), Colorado (no de minimis threshold for nonresidents), Utah, and Wyoming (no income tax). Colorado is the key state — any allocated income technically requires a nonresident return. In the year you sell, disposition gain is allocated across all operating states, potentially triggering multiple filing requirements.

Common WES K-1 Mistakes

Confusing WES (partnership, K-1) with OXY (corporation, 1099-DIV). Using broker basis when selling. Not checking Form 8937 if you acquired through the Aris merger. Not tracking basis from the first year. Ignoring Colorado’s zero de minimis filing threshold.

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