The New York Stock Exchange (NYSE) has issued Stone Energy Corp. a notice of non-compliance for failing to maintain its market capitalization listing standard. The company received the notice on May 17. Its average market capitalization has been less than $50 million over a consecutive 30-day trading period. Under NYSE rules, the company was given 10 business days from receipt of the notice to send a letter saying it would submit a plan that demonstrates its ability to regain compliance within 18 months. It then has 45 days after it sends the letter to submit such a plan. Stone Energy's finances have rapidly deteriorated in recent months with the fall in commodity prices; its borrowing base has been cut, its capital budget has been slashed, and it has warned of default and hired an adviser to explore strategic alternatives (see Shale DailyApril 18March 15). The company, which primarily operates in the offshore Gulf of Mexico and the Appalachian Basin, has shut in nearly all of its production in the Marcellus Shale, where differentials have been squeezing its returns. Its stock has traded at a 52-week low of 27 cents/share.