Contains spoilers for this episode and earlier episodes.
Combo is shot by a young boy working for rival dealers while selling outside Heisenberg's territory. His death and Badger's recent arrest scare Skinny Pete out of the drug trade, leaving Walt and Jesse without a way to sell their meth. Saul says they need a buyer who can take the product in bulk and arranges a cautious distributor to meet Walt at Los Pollos Hermanos. Jesse arrives late and high, so the buyer leaves without speaking to Walt. Walt returns to the restaurant and works out that its manager is not the person he is seeking; the actual owner is Gus Fring.
Walt later meets Gus and argues that Jesse can be trusted despite his drug use. Gus warns him not to rely on an addict and says he will make contact if he wants to work with them. Jesse, grieving Combo and worried about Jane's recovery, had asked her to leave before he used meth; she stays, relapses and introduces him to heroin. At Beneke Fabricators, Skyler finds irregularities in the accounts. Ted admits he understated revenue to avoid taxes and keep the business operating. Skyler says she will not report him but leaves the job, then returns the next day. When Gus gives Walt an urgent delivery deadline, Walt has to retrieve the meth from Jesse's apartment and leave as Skyler goes into labour.