Boston, MA 04/22/2014 (wallstreetpr) – Kinder Morgan Inc (NYSE:KMI) is $32 billion diversified company in the energy industry that owns and operates storage and transportation assets. Last month the company reportedly signed an agreement that committed it to repair 4.5 miles of the damaged road in Montezuma County.
However, the company now believes that the agreement should be renegotiated because the $1.5 million projected for spending on the road repair seems too big. In any case, the company cites that it has already done enough in contributing big revenue to the Montezuma County.
The original agreement required Kinder Morgan to repair Road CC that its heavy trucks utilize.
According to the regulatory manager at Kinder Morgan, Phil Kennedy, the company is being treated unfairly in the road repair issue. He noted that the company contributed about $16 million in revenue to the country in 2013. While the company is not opposed to the repair of the damaged road as required, Mr. Kennedy called for an “equitable sum” to improve and maintain Road CC.
In any case, Mr. Kennedy observed that as a company, they are there to make money, and their responsibility is to the shareholders.
County officials will hear none
However, Montezuma Country officials believe that Kinder Morgan Inc (NYSE:KMI) should go ahead and repair the road as earlier agreed. According to Commissioner Larry Don Suckla, if Kinder Morgan damaged the road, then it should fix it.
The commissioners observed that as much as landowners are happy about their royalties from Kinder Morgan Inc (NYSE:KMI), residents want their roads and the company can only do the needful.
Profit decline at Kinder Morgan
The issue about the road repair renegotiation came just when Kinder Morgan Inc (NYSE:KMI) reported profit decline in the first quarter. The company announced that the profit fell by 1.7 percent. However, the company expressed optimism that 2014 would be a better year than 2013. The company upped its dividend payout to $0.42 from $0.38.
Kinder Morgan plans to spend about $3.6 billion in various expansion and acquisition projects this year. The money is part of the combined $16.4 billion that the company has earmarked for spending in expansion and joint venture projects across its businesses.