Good question. I took a quick stab at looking at their financials, but it is going to take several days to come up with an opinion.
I think the broad brush answer is they are intending to use the acquisitions to grow DCF. If this takes longer or does not produce enough additional DCF, the stock may take another hit.
I am increasingly concerned about the sinking distribution yields on many MLPs. All it will take is the Fed to finish or end QE2 and a bad auction and 10-yr Treasury note yield will be at 4% on its way ever higher.
at low end of a dcf of 2.38 per unit after 50 % conversion of class b, would only be a coverage ratio of .84
going to take some time to make that up as remainder of class b covert in 2012 which would make the low end of the dcf or a .80 coverage ratio in 2012 without significant cash grow in 2011 and 2012 to cover shortfall.
I would say at best inergy would not be in a position to increase distributions until 2013 at earliest based on data they provided in wf dec 2010 presentation