The settlement occurred in April and we bought our way out of the CBM property in WY so legal expense will finally abate in 2Q. I can understand the frustration at the legal costs through the years, but the end of the extraordinary costs is in sight. It will be interesting to see what SG&A finally normalizes at.
The take away for me from the call is the growing production from the Marcellus and its liquids component, plus the increasing takeaway capacity due to Williams Partners buying and improving the gathering system. The ramp up is finally underway and it's 1/3 liquids. Thanks to Josh Young we learned the IRR rate on these Marcellus wells is ~45% with current strip pricing for liquids and gas.
I doubled down Friday afternoon in what felt like the final capitulation for some institution. GST seemed at $2.10 like the way to play the recovery in NG pricing without having to have bet on the commodity turn two weeks ago, because I wasn't that smart to have done so. GLTA and please call your mothers tomorrow.