US pipeline operator Kinder Morgan cuts 2016 budget
April 22 (Reuters) -- US pipeline operator Kinder Morgan reported a lower first-quarter profit this week and further cut its 2016 capital budget as a result of a prolonged slump in crude oil prices.
Kinder Morgan 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/share, from $429 million, or 20 cents/share.
The Houston-based company's revenue fell 11.2% to $3.195 billion in the quarter ended March 31.
(Reporting by Manish Parashar in Bengaluru; Editing by Savio D'Souza)
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