If the distribution was cut by 10%, the yield would still be over 10%, one of the best in midstream MLPS. I don't think they will cut it though. ETP had coverage of the distribution as low as 85% in 2009-2010 and never cut the dist. With a good story for midstream growth, the lenders will be patient.
nrgy's ipo was created placing all mid stream assets into(nrgn)and nrgn now has mid stream assets once held by nrgy. nrgy owns 75% of ipo nrgp. so the mid stream assets are now an indirect asset class as part of the business model for nrgy. the problem is as the investor relations guy states nrgy can not go positive on DCF all of 2012. some newly acquired assets are under preforming and warm weather in the northeast make the shortfall for DCF more of an issue. look for a poor earnings projection going forward jan 27. nrgy will have to borrow to pay distro. (big dollars) not sure how long this will go on. i would hold off until things settle.