Kinder Morgan reduces 2016 capital budget to $2.9B from $3.3B
April 20 (Reuters) – U.S. pipeline operator Kinder Morgan Inc reported a lower first-quarter profit and further cut its 2016 capital budget as a result of a prolonged slump in crude oil prices.
The company reduced its 2016 capital budget to $2.9 billion, after earlier having lowered its spending plans to $3.3 billion in January.
Pipeline companies, once seen as more insulated from commodity price swings due to fixed-fee contracts, are now increasingly facing the risk of bankrupt oil and gas companies reneging on their contracts.
Net income available to Kinder Morgan shareholders fell to $276 million, or 12 cents per share, from $429 million, or 20 cents per share.
The Houston-based company’s revenue fell 11.2 percent to $3.195 billion in the quarter ended March 31.
Kinder Morgan’s shares were down 2.4 percent at $18.5 in extended trading on Wednesday.
(Reporting by Manish Parashar in Bengaluru; Editing by Savio D’Souza)