A distribution cut is almost out of the question. Growth of the distribution may slow or even come to a halt, but I doubt very seriously that Inergy has to make any cuts. I can't believe people can get so confused over a rumor. This is a freaking strong MLP with rock solid assets and growth prospects. Anyone that thinks they are going to cut the distribution probably has looked at the DCF and coverage ratios lately.
I agree with you. I think they will have to adjust the dividend in 2011 and this could drive down the shares 10%. That will be a good buying opportunity. Many new shares issued in last year and the added income will not really arrive until 2012. So I expect that the year end quarter is going to be like 3rd quarter. Perhaps not as bad but not good.