STONE ENERGY CORPORATION

Announces First Quarter 2012 Results

LAFAYETTE, LA. May 7, 2012

Stone Energy Corporation (NYSE: SGY) today announced financial and operational results for the first quarter of 2012, and provided updated guidance. Some of the highlights include:

CEO David Welch stated, “The first quarter 2012 results continue to show the forward momentum and positive effects of diversifying our asset base with increases in production from our deep water, price-advantaged deep gas and Marcellus shale areas. Deep water production rates have increased with the Pyrenees and Wideberth start-ups adding to the base production from the Pompano acquisition. Deep gas production commenced from the La Cantera discovery well during the first quarter, with the second La Cantera well now drilling. In addition, our Marcellus shale production is increasing while focusing on the liquids rich Mary and Heather fields. The increased production combined with the recent $300 million convertible notes issuance creates a stable financial base upon which to continue to grow the company through exploration and acquisitions.”

Financial Results

For the first quarter of 2012, Stone reported net income of $51.0 million, or $1.03 per share, on oil and gas revenue of $244.1 million, compared to net income of $39.8 million, or $0.81 per share, on oil and gas revenue of $199.2 million in the first quarter of 2011. Discretionary cash flow totaled $174.7 million during the first quarter of 2012, as compared to $140.3 million during the first quarter of 2011. Please see “Non-GAAP Financial Measures” and the accompanying financial statements for a reconciliation of discretionary cash flow, a non-GAAP financial measure, to net cash flow provided by operating activities.

Daily production during the first quarter of 2012 averaged 41.0 thousand barrels of oil equivalent (MBoe) per day (246 million cubic feet of gas equivalent (MMcfe) per day), compared with daily production of 36.0 MBoe (216 MMcfe) per day in the fourth quarter of 2011, and daily production of 36.2 MBoe (217 MMcfe) per day in the first quarter of 2011. First quarter of 2012 production mix was 50% oil, 5% natural gas liquids (NGL), and 45% natural gas.

Beginning in the first quarter of 2012, Stone began capturing and reporting natural gas liquids volumes and revenues separate from gas volumes. In the past, Stone reported “wet” gas volumes, which included the NGL volumes, and provided for a positive upward adjustment in the realized natural gas price. Stone will now report NGL and “dry” gas (shrunk for removal of liquids) volumes due to its rising NGL volumes. Reporting NGL and “dry” gas volumes separately yields a slight increase in overall equivalent volumes when compared to reporting “wet” gas volumes.

Prices realized during the first quarter of 2012 averaged $108.36 per barrel of oil, $67.26 per barrel of NGLs and $2.89 per Mcf of natural gas. Average realized prices for the first quarter of 2011 were $94.06 per barrel of oil, $46.87 per barrel of NGLs and $4.53 per Mcf of natural gas. The average realized natural gas price of $4.79 per Mcf previously reported for the first quarter of 2011 reflected the positive upward adjustment of the net NGL revenues which is now reported separately. Effective hedging transactions increased the average realized price of natural gas by $0.48 per Mcf and decreased the average realized price of oil by $3.13 per barrel in the first quarter of 2012.

Lease operating expenses during the first quarter of 2012 totaled $44.5 million ($11.93 per Boe or $1.99 per Mcfe), compared to $38.3 million ($11.75 per Boe or $1.96 per Mcfe), in the first quarter of 2011.

Depreciation, depletion and amortization (DD&A) on oil and gas properties for the first quarter of 2012 totaled $83.8 million ($22.48 per Boe or $3.75 per Mcfe), compared to $66.4 million ($20.38 per Boe or $3.40 per Mcfe), in the first quarter of 2011.

Salaries, general and administrative (SG&A) expenses for the first quarter of 2012 were $13.7 million ($3.68 per Boe or $0.61 per Mcfe), compared to $11.7 million ($3.60 per Boe or $0.60 per Mcfe), in the first quarter of 2011.

Capital expenditures before capitalized SG&A and interest during the first quarter of 2012 were approximately $88.4 million, which includes $3.8 million of plugging and abandonment expenditures. Additionally, $5.6 million of SG&A expenses and $8.7 million of interest were capitalized during the first quarter of 2012.

On March 6, 2012, we issued $300 million of 1  ³/4% Senior Convertible Notes due 2017 in a private offering. The conversion price is $42.65 per share to the holders; however, utilizing a “call-spread” instrument, the effective conversion price to the company was increased to $55.91 per share. For financial accounting purposes, the $300 million 1  ³/4% Senior Convertible Notes were recorded on the balance sheet at a discount to face value with the debt component extrapolated using an assumed market interest rate.

Upon completion of the offering, our borrowing base under our bank credit facility was automatically reduced from $400 million to $310 million. On May 4, 2012, our borrowing base under our credit facility was increased back to $400 million after a semi-annual redetermination.

  On March 31, 2012, we had $263.8 million in cash, no outstanding borrowings under our bank credit facility and letters of credit totaling $27.1 million. As of May 7, 2012, we had no outstanding borrowings under our bank credit facility and letters of credit totaling $27.1 million had been issued pursuant to the facility, leaving $372.9 million of availability under the facility.

Operational Update

La Cantera (Deep Gas). The La Cantera/LaPosada discovery well began producing in March and is currently at a gross rate of approximately 27 MMcf of gas, 600 Bbl of oil and 950 Bbl of NGLs per day, or 10 MMcfe per day net to Stone. In addition, a second well, the Broussard #2, is currently drilling at 15,000 feet. The second well will target the same pay sands encountered in the initial discovery well–and is expected to reach total depth of 18,900 feet in the third quarter of 2012. Stone holds an approximate 34.5% working interest in this project.

Pompano Field (Deep Water). The transfer of operatorship of the field from BP to Stone was completed in the first quarter of 2012. Several workover/recompletion projects are ready to be executed during the second quarter, followed by a platform drilling program projected for 2013. Current net production is approximately 3,400 Boe per day.

Garden Banks 293 – Pyrenees (Deep Water). Production commenced from the Pyrenees deep water subsea tie-back well late in the first quarter of 2012. The gross production rate is currently 31 MMcf per day and 2,200 Bbl per day (approximately 13 MMcfe per day net). Stone holds a 30% non-operated working interest in Pyrenees.

Green Canyon 490 – Wideberth (Deep Water). Production from the Wideberth discovery (acquired in the fourth quarter of 2011) commenced in late April. The gross production rate is currently 35 MMcf per day and 3,200 Bbl per day (approximately 13 MMcfe per day net). Stone holds a 25% non-operated working interest in Wideberth.

Green Canyon 823 – Parmer (Deep Water). The deep water Parmer step-out appraisal well is expected to spud late in the second quarter of 2012. The well is expected to drill for approximately three months, followed by a possible sidetrack. Stone holds a 50% working interest in the prospect operated by Apache.

Conventional Shelf. Drilling commenced on the second well of the 4-5 well program at the Ship Shoal 113 field. The first prospect, Smokin Rooster, was successful encountering 95 feet of pay with first production expected in May. The second prospect, Jointed Thunderstick, is currently drilling at 7,700 feet. The Lionfish prospect at South Pelto 23 is currently being completed with first production expected by early June.

Lighthouse Bayou Deep Prospect (Ultra Deep Gas). Plans continue for the deepening of the Lighthouse Bayou prospect, located in Cameron Parish, below 25,500 feet. The Lighthouse Bayou deepening operation is currently projected to commence in 2013, subject to final technical review. Chevron is now the operator and Stone holds a 25% working interest in the prospect.

Appalachian Basin (Marcellus Shale). During the first quarter of 2012, the Caiman pipeline constraints from the Mary field were addressed allowing eleven Mary field wells from two pads to flow (at a slightly constrained rate) by the end of the first quarter. Total first quarter net production from the Marcellus shale including volumes from the Mary, Heather, Buddy and Katie fields was approximately 29 MMcfe per day. Drilling continues on the liquid rich Mary and Heather fields in West Virginia with a total of seven horizontal wells drilled year to date. Stone has fracture-stimulated six more wells at its Mary field with first production from this new pad scheduled by early third quarter of 2012. Additionally, fracture-stimulations have commenced on seven more wells in the Mary field, with first production anticipated by early fourth quarter of 2012. Stone expects to drill between 22 and 27 horizontal wells and complete 20 to 26 wells in the Mary and Heather fields during 2012.

2012 Guidance

Guidance for the second quarter and full year 2012 has been updated (updated figures are italicized) and is shown in the table below. The guidance is subject to all the cautionary statements and limitations described below and under the caption “Forward Looking Statements.”

Hedge Position

The following table illustrates our derivative positions for 2012, 2013 and 2014 as of May 7, 2012:

Other Information

Stone Energy has planned a conference call for 10:00 a.m. Central Time on Tuesday, May 8, 2012 to discuss the operational and financial results for the first quarter of 2012. Anyone wishing to participate should visit our website at www.StoneEnergy.com for a live web cast or dial 1-877-228-3598 and request the “Stone Energy Call.” If you are unable to participate in the original conference call, a replay will be available immediately following the completion of the call on Stone Energy’s website. The replay will be available for one month.

In addition, as previously announced, Stone Energy will hold its 2012 Annual Meeting of Stockholders on Thursday, May 24, 2012, at 10:00 a.m., CDT, at the Windsor Court Hotel, 300 Gravier Street, New Orleans, Louisiana. The Company proposes to elect ten directors, to ratify the appointment of Ernst & Young LLP as the Company’s independent public accounting firm for the fiscal year ending December 31, 2012, to have a non-binding advisory vote on the compensation of the named executive officers (say on pay), and to transact such other business as may properly come before the meeting.

Non-GAAP Financial Measures

In this press release, we refer to a non-GAAP financial measure we call “discretionary cash flow.” Management believes discretionary cash flow is a financial indicator of our company’s ability to internally fund capital expenditures and service debt. Management also believes this non-GAAP financial measure of cash flow is useful information to investors because it is widely used by professional research analysts in the valuation, comparison, rating and investment recommendations of companies in the oil and gas exploration and production industry. Discretionary cash flow should not be considered an alternative to net cash provided by operating activities or net income, as defined by GAAP. Please see the “Reconciliation of Non-GAAP Financial Measure” for a reconciliation of discretionary cash flow to cash flow provided by operating activities.

Forward Looking Statements

Certain statements in this press release are forward-looking and are based upon Stone’s current belief as to the outcome and timing of future events. All statements, other than statements of historical facts, that address activities that Stone plans, expects, believes, projects, estimates or anticipates will, should or may occur in the future, including future production of oil and gas, future capital expenditures and drilling of wells and future financial or operating results are forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include the timing and extent of changes in commodity prices for oil and gas, operating risks, liquidity risks, political and regulatory developments and legislation, including developments and legislation relating to our operations in the Gulf of Mexico and Appalachia, and other risk factors and known trends and uncertainties as described in Stone’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the SEC. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, Stone’s actual results and plans could differ materially from those expressed in the forward-looking statements.

Estimates for Stone’s future production volumes are based on assumptions of capital expenditure levels and the assumption that market demand and prices for oil and gas will continue at levels that allow for economic production of these products. The production, transportation and marketing of oil and gas are subject to disruption due to transportation and processing availability, mechanical failure, human error, hurricanes and numerous other factors. Stone’s estimates are based on certain other assumptions, such as well performance, which may vary significantly from those assumed. Delays experienced in well permitting could affect the timing of drilling and production. Lease operating expenses, which include major maintenance costs, vary in response to changes in prices of services and materials used in the operation of our properties and the amount of maintenance activity required. Estimates of DD&A rates can vary according to reserve additions, capital expenditures, future development costs, and other factors. Therefore, we can give no assurance that our future production volumes, lease operating expenses or DD&A rates will be as estimated.

Stone Energy is an independent oil and natural gas exploration and production company headquartered in Lafayette, Louisiana with additional offices in New Orleans, Houston and Morgantown, West Virginia. Our business strategy is to leverage cash flow generated from existing assets to maintain relatively stable GOM shelf production, profitably grow gas reserves and production in price-advantaged basins such as Appalachia and the Gulf Coast Basin, and profitably grow oil reserves and production in material impact areas such as the deep water GOM and onshore oil. For additional information, contact Kenneth H. Beer, Chief Financial Officer, at 337-521-2210 phone, 337-521-9880 fax or via e-mail at CFO@StoneEnergy.com.

STONE ENERGY CORPORATION

SUMMARY STATISTICS

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RECONCILIATION OF NON-GAAP FINANCIAL MEASURE

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