Yup, it's either that or fab an entirely new low-profile skidplate. If you try to cut down the one you have the ends won't bolt up and if you heat & bend it outward so they DO bolt up you'll destroy the temper of the steel and it'll bend when you hit something (not what you a skidplate to do). It really doesn't hang down much more than a couple inches below the xfer case anyways so at *best* you'd maybe gain 2" by fabbing a new one. If it seems low to you then why not just *raise* the rest of the truck

/emoticons/
[email protected] 2x" width="20" height="20" />. Lots & lots of ways to put more distance between that plate & the ground.