Filed by Plains Exploration & Production Company

Pursuant to Rule 165 and Rule 425 of the Securities Act of 1933, as amended

Subject Company: Stone Energy Corporation

Commission File No: 001-12074

1

PXP

PXP

PXP Forward Looking Statements

Except for the historical information contained herein, the matters discussed in this presentation are forward-looking

statements that involve certain assumptions and known and unknown risks, uncertainties and other factors that could cause

our actual results to differ materially.  These risks and uncertainties include, among other things, uncertainties inherent in the

exploration for and development and production of oil & gas and in estimating reserves, unexpected difficulties in integrating

Stone Energy Corporation’s (Stone) operations into ours, unexpected future capital expenditures, general economic conditions,

oil and gas price volatility, the success of our risk management

activities, competition, regulatory changes and other factors

discussed in PXP’s filings with the Securities and Exchange Commission.

PXP and Stone will file a joint proxy statement/prospectus and other documents with the SEC. Investors and security holders

are

urged

to

carefully

read

the

joint

proxy

statement/prospectus

when

it

becomes

available,

because

it

will

contain

important

information regarding PXP, Stone and the acquisition.  A definitive joint proxy statement/prospectus will be sent to security

holders of PXP and Stone seeking their approval of the acquisition.  Investors and security holders may obtain a free copy of

the proxy statement/prospectus (when available) and other documents filed by PXP and Stone with the SEC at the SEC’s web

site at www.sec.gov. The proxy statement/prospectus and such other documents (relating to PXP) may also be obtained for free

from PXP by directing such request to: Plains Exploration & Production Company, 700 Milam, Suite 3100, Houston, TX 77002,

Attention: Joanna Pankey; telephone: (713) 579-6000; e-mail: jpankey@plainsxp.com. The proxy statement/prospectus and such

other documents (relating to Stone) may also be obtained for free from Stone by directing such request to: Stone Energy

Corporation, 625 E. Kaliste Saloom Road, Lafayette, LA 70508,  Attention: Kenneth Beer; telephone: (337) 237-0410; e-mail:

CFO@stoneenergy.com.

PXP, its directors, executive officers and certain members of management and employees may be considered “participants in

the solicitation”

of proxies from PXP’s stockholders in connection with the acquisition. Information regarding such persons and

a description of their interests in the acquisition will be contained in the joint proxy statement/prospectus when it is filed.

Stone, its directors, executive officers and certain members of management and employees may be considered “participants in

the solicitation”

of proxies from Stone’s stockholders in connection with the acquisition. Information regarding such persons

and a description of their interests in the acquisition will be contained in the joint proxy statement/prospectus when it is filed.

2

PXP

PXP

Today’s Announcement

PXP entered into an agreement to acquire

Stone Energy in a tax-free stock-for-stock

transaction. The exchange ratio is 1.25 PXP

shares for each Stone share. PXP will assume

$483 million of debt net of cash on the balance

sheet at year-end 2005.

Terminated PXP’s 2007 and 2008 crude oil

collars. Eliminates all commodity price caps

on future PXP production.

3

PXP

PXP

Corporate Strategy

Accelerate PXP’s Per Share Growth

Increased Cash Flow  -

Highly accretive from improved

realizations

Production Growth     -

Gulf of Mexico                           

-

Jonah/Pinedale

Reserve Potential    

-

Green River Basin                            

-

Williston Basin Bakken

-

Uinta Basin

4

PXP

PXP

2007 Cash Margin Increase

NYMEX Strip

$46

$34

2007

w/Collars

2007

Pro Forma

NYMEX Strip: Crude Oil -

2007: $73.43, Natural Gas -

$10.28

/BOE

/BOE

35%

5

PXP

PXP

Pro Forma Production

* From Jan. 1, 2006

*

BOEPD

0

65,000

130,000

2005

2006

2007

2008

6

PXP

PXP

500 MMBOE   

proved reserves

(1)

12 -

14 yr R/P

80% Oil      

reserves

70% -

75% Oil

production

Pro Forma Business Profile

_________________________

(1) 2005 year-end proved reserves.

385 MMBOE

74 MMBOE

41 MMBOE

Williston Basin

Wind River Basin

Powder River Basin

West Texas

Gulf of Mexico

Greater Green

River Basin

Uinta Basin

Offshore

California

San

Joaquin

Valley

San

Joaquin

Valley

L.A. Basin

L.A. Basin

7

PXP

PXP

2007 Pro Forma Capital Budget

Regional Breakdown

30%

20%

50%

$900 to $1,000 MM

Gulf of Mexico

Rockies/Texas

California

8

PXP

PXP

Expanded Project Inventory

Rocky Mountains/Texas

45,000

net

developed acres

487,750

net

undeveloped

acres

550+

future well

locations

Williston Basin

Wind River Basin

Powder River Basin

West Texas

Greater Green

River Basin

Uinta Basin

Wyoming

North

Dakota

Utah

9

PXP

PXP

Expanded Project Inventory

Gulf of Mexico

175+ Gulf of Mexico

blocks covering 1,000,000

acres

3,600

blocks of 3-D

seismic coverage

Significant 2006 Discovery

Big Foot

Gulf of Mexico

Significant 2006 Drills

Caesar    

Norman

Grand Cayman

Friesian

10

PXP

PXP

California

385 MMBOE

proved

reserves and 53,600

BOEPD production

350 MMBOE

resource potential

2,500+

future well

locations

Los Angeles Basin

Los Angeles Basin

San Joaquin Valley

San Joaquin Valley

Santa Maria Basin

Santa Maria Basin

11

PXP

PXP

Corporate Strategy

Disciplined capital expenditure program

Selective acquisitions

Reduce debt

Repurchase stock

Accelerate PXP’s Per Share Growth

12

PXP

PXP

Pro Forma EOY 2006 Credit Statistics

10.0 –

11.0x

EBITDAX/Interest

1.50 –

1.20x

Debt/EBITDAX

$5.00 –

6.00

Debt/Proved Developed

$3.50 –

4.00

Debt/Proved Reserves

40% –

50%

Debt to Equity

$1.5 –

1.9 Billion

Total Debt

13

PXP

PXP

Transaction Expectations

Significant cash flow per share accretion

2007/2008 oil price realization increase with 100%

commodity price exposure with downside

protection at $55 WTI in 2006, 2007 and 2008 

Stronger balance sheet and significant increase

in potential free cash flow per share in 2007 and

2008

Diversified near-term opportunities to

complement long-lead time growth projects