----

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| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------|

| Delaware                                                      | 86-0879278                       |
|---------------------------------------------------------------|----------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (IRS EmployerIdentification No.) |

|   | Large accelerated filer o                     | Accelerated filer o         |
|--------|-----------------------------------------------|-----------------------------|
|   |                                          |                        |
|   | Non-accelerated filer o                       | Smaller reporting company x |
|   | (Do not check if a smaller reporting company) |                        |

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|                                                                                                       | Page   |
|------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                       |   |
| PART I. FINANCIAL INFORMATION                                                                              | 1      |
|                                                                                                       |   |
| Item 1. Financial Statements (Unaudited):                                                             | 1      |
|                                                                                                       |   |
| Condensed Consolidated Balance Sheets as of June 30, 2010 and December 31, 2009                            | 1      |
|                                                                                                       |   |
| Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2010 and 2009  | 2      |
|                                                                                                       |   |
| Condensed Consolidated Statements of Shareholders’ Equity for the Six Months Ended June 30, 2010     | 3      |
|                                                                                                       |   |
| Condensed Consolidated Statements of Cash Flows for the  Six Months Ended June 30, 2010 and 2009 | 4      |
|                                                                                                       |   |
| Notes to Condensed Consolidated Financial Statements                                                       | 5      |
|                                                                                                       |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations   | 16     |
|                                                                                                       |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                         | 28     |
|                                                                                                       |   |
| Item 4T. Controls and Procedures                                                                      | 28     |
|                                                                                                       |   |
| Part II. OTHER INFORMATION                                                                                 | 29     |
|                                                                                                       |   |
| Item 1.  Legal Proceedings                                                                       | 29     |
|                                                                                                       |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                        | 29     |
|                                                                                                       |   |
| Item 6. Exhibits                                                                                      | 30     |
|                                                                                                       |   |
| SIGNATURES                                                                                                 | 31     |

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|                                                                                                                                                                                                                                                                     |   | June 30, |                                                                                                                      |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                     |   | 2010     |                                                                                                                      |   | 2009         |   |
| ASSETS                                                                                                                                                                                                                                                                   |   |     |                                                                                                                      |   |         |   |
| CURRENT ASSETS:                                                                                                                                                                                                                                                          |   |     |                                                                                                                      |   |         |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                |   | $        |      4,645,413                                                                                   |   |         | $      | 2,281,568 |   |
| Accounts receivable                                                                                                                                                                                                                                                      |   |     |      7,048,522                                                                                   |   |         |   | 3,236,043 |   |
| Derivative assets                                                                                                                                                                                                                                                        |   |     |         788,452                                                                   |   |         |   | 1,261,534 |   |
| Prepaids and other current assets                                                                                                                                                                                                                                        |   |     |      1,351,108                                                                                   |   |         |   | 94,113 |   |
| Total current assets                                                                                                                                                                                                                                                     |   |     |    13,833,495                                                                                              |   |         |   | 6,873,258 |   |
|                                                                                                                                                                                                                                                                     |   |     |                                                                                                                      |   |         |   |   |   |
| PROPERTY AND EQUIPMENT (Net of Accumulated Depletion and Depreciation):                                                                                                                                                                                                  |   |     |                                                                                                                      |   |         |   |   |   |
| Oil and natural gas properties, successful efforts accounting                                                                                                                                                                                                            |   |     |                                                                                                                      |   |         |   |   |   |
| Unproved                                                                                                                                                                                                                                                                 |   |     |    44,875,156                                                                                              |   |         |   | 11,887,483 |   |
| Proved properties                                                                                                                                                                                                                                                        |   |     |    94,502,181                                                                                              |   |         |   | 43,995,567 |   |
| Equipment and other fixed assets                                                                                                                                                                                                                                         |   |     |    10,550,511                                                                                              |   |         |   | 1,655,582 |   |
| Total property and equipment, net                                                                                                                                                                                                                                        |   |     |  149,927,848                                                                                                         |   |         |   | 57,538,632 |   |
|                                                                                                                                                                                                                                                                     |   |     |                                                                                                                      |   |         |   |   |   |
| OTHERS ASSETS:                                                                                                                                                                                                                                                           |   |     |                                                                                                                      |   |         |   |   |   |
| Derivative and other assets                                                                                                                                                                                                                                              |   |     |      2,404,599                                                                                   |   |         |   | 1,159,405 |   |
| Deferred financing costs, net of amortization of $576,350 and $35,831 respectively                                                                                                                                                                                       |   |     |      3,102,307                                                                                   |   |         |   | 1,012,756 |   |
| Total assets                                                                                                                                                                                                                                                             |   | $        |  169,268,249                                                                                                         |   |         | $      | 66,584,051 |   |
|                                                                                                                                                                                                                                                                     |   |     |                                                                                                                      |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                               |   |     |                                                                                                                      |   |         |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                                                                                                     |   |     |                                                                                                                      |   |         |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                         |   | $        |      6,660,198                                                                                   |   |         | $      | 4,852,221 |   |
| Accrued liabilities                                                                                                                                                                                                                                                      |   |     |      4,716,669                                                                                   |   |         |   | 885,622 |   |
| Revenue payable                                                                                                                                                                                                                                                          |   |     |      2,207,685                                                                                   |   |         |   | 342,585 |   |
| Dividend payable                                                                                                                                                                                                                                                         |   |     |                     - |   |         |   | 25,654 |   |
| Current portion of notes payable                                                                                                                                                                                                                                         |   |     |         576,057                                                                   |   |         |   | 44,157 |   |
| Derivative liability                                                                                                                                                                                                                                                     |   |     |                     - |   |         |   | 69,136 |   |
| Total current liabilities                                                                                                                                                                                                                                                |   |     |    14,160,609                                                                                              |   |         |   | 6,219,375 |   |
|                                                                                                                                                                                                                                                                     |   |     |                                                                                                                      |   |         |   |   |   |
| Payable on sale of partnership                                                                                                                                                                                                                                           |   |     |         640,695                                                                   |   |         |   | 640,695 |   |
| Notes payable, less current portion                                                                                                                                                                                                                                      |   |     |    60,737,243                                                                                              |   |         |   | 13,000,000 |   |
| Asset retirement obligation                                                                                                                                                                                                                                              |   |     |      4,511,786                                                                                   |   |         |   | 2,032,306 |   |
| Total liabilities                                                                                                                                                                                                                                                        |   |     |    80,050,333                                                                                              |   |         |   | 21,892,376 |   |
|                                                                                                                                                                                                                                                                     |   |     |                                                                                                                      |   |         |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                                                            |   |     |                                                                                                                      |   |         |   |   |   |
|                                                                                                                                                                                                                                                                     |   |     |                                                                                                                      |   |         |   |   |   |
| REDEEMABLE PREFERRED STOCK:                                                                                                                                                                                                                                              |   |     |                                                                                                                      |   |         |   |   |   |
| Series C Cumulative Perpetual Preferred Stock, cumulative dividend rate 10.25% per annum, 750,000 authorized, 594,260 and 214,950 issued & outstanding as of June 30, 2010 and December 31, 2009, respectively, with liquidation preference of $25.00 per share |   |     | 14,856,500                                                                                                                |   |         |   | 5,373,750 |   |
|                                                                                                                                                                                                                                                                     |   |     |                                                                                                                      |   |         |   |   |   |
| SHAREHOLDERS’ EQUITY:                                                                                                                                                                                                                                              |   |     |                                                                                                                      |   |         |   |   |   |
| Preferred stock, 9,250,000 shares authorized, none issued and outstanding                                                                                                                                                                                                |   |     | -                                                                                                                         |   |         |   | - |   |
| Common stock, $0.01 par value; 100,000,000 shares authorized, 68,606,661 and 50,591,610 shares issued and outstanding as of June 30, 2010 and December 31, 2009, respectively                                                                                            |   |     |         686,067                                                                   |   |         |   | 505,916 |   |
| Additional paid in capital                                                                                                                                                                                                                                               |   |     |  116,776,873                                                                                                         |   |         |   | 71,936,306 |   |
| Accumulated deficit                                                                                                                                                                                                                                                      |   |     |   (43,178,255)                                                                                                  |   |         |   | (33,135,693 | ) |
| Treasury Stock, previously deposit on Triad, at cost, 761,652 shares                                                                                                                                                                                                     |   |     |     (1,310,357)                                                                                       |   |         |   | (1,310,357 | ) |
| Total Magnum Hunter Resources Corporation shareholders' equity                                                                                                                                                                                                      |   |     |    72,974,328                                                                                              |   |         |   | 37,996,172 |   |
| Non-controlling interest                                                                                                                                                                                                                                                 |   |     |      1,387,088                                                                                   |   |         |   | 1,321,753 |   |
| Total shareholders’ equity                                                                                                                                                                                                                                         |   |     |    74,361,416                                                                                              |   |         |   | 39,317,925 |   |
| Total liabilities and shareholders' equity                                                                                                                                                                                                                               |   | $        | 169,268,249                                                                                                               |   |         | $      | 66,584,051 |   |

----

|                                                         |   | Three Months Ended |       |   | Six Months Ended |   |
|--------------------------------------------------------------|--------|--------------------|------------|--------|------------------|--------|
|                                                         |   | June 30,           |       |   | June 30,         |   |
|                                                         |   | 2010               |       |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| REVENUE:                                                     |   |               |       |   |             |   |   |   |   |   |   |   |
| Oil and gas sales                                            |   | $                  | 8,343,767  |   |             | $      | 2,428,891 |   |   | $ | 15,638,759 |   |   | $ | 4,245,927 |   |
| Field operations and other                                   |   |               | 1,460,309  |   |             |   | 100,000 |   |   |   | 1,988,298 |   |   |   | 200,000 |   |
| Total revenue                                                |   |               | 9,804,076  |   |             |   | 2,528,891 |   |   |   | 17,627,057 |   |   |   | 4,445,927 |   |
|                                                         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES:                                                    |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Lease operating expenses                                     |   |               | 3,035,447  |   |             |   | 1,024,107 |   |   |   | 5,256,031 |   |   |   | 2,042,718 |   |
| Severance taxes and marketing                                |   |               | 813,299    |   |             |   | 249,098 |   |   |   | 1,346,848 |   |   |   | 475,049 |   |
| Exploration                                                  |   |               | 373,981    |   |             |   | 19,201 |   |   |   | 825,109 |   |   |   | 113,676 |   |
| Field operations                                             |   |               | 1,446,348  |   |             |   | - |   |   |   | 1,843,063 |   |   |   | - |   |
| Depreciation, depletion and accretion                        |   |               | 3,306,172  |   |             |   | 799,335 |   |   |   | 4,849,063 |   |   |   | 2,106,862 |   |
| General and administrative                                   |   |               | 6,501,439  |   |             |   | 1,445,062 |   |   |   | 13,269,477 |   |   |   | 2,191,675 |   |
| Total expenses                                               |   |               | 15,476,686 |   |             |   | 3,536,803 |   |   |   | 27,389,592 |   |   |   | 6,929,980 |   |
|                                                         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                         |   |               | (5,672,610 | )      |             |   | (1,007,912 | ) |   |   | (9,762,534 | ) |   |   | (2,484,053 | ) |
|                                                         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME AND (EXPENSE):                                  |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                              |   |               | 2,333      |   |             |   | 251 |   |   |   | 4,227 |   |   |   | 852 |   |
| Interest expense                                             |   |               | (1,157,198 | )      |             |   | (607,509 | ) |   |   | (1,919,884 | ) |   |   | (1,178,186 | ) |
| Gain (Loss) on derivative contracts                          |   |               | 1,277,482  |   |             |   | (1,774,419 | ) |   |   | 2,409,360 |   |   |   | (1,218,104 | ) |
|                                                         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                     |   |               | (5,549,993 | )      |             |   | (3,389,589 | ) |   |   | (9,268,831 | ) |   |   | (4,879,491 | ) |
|                                                         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net (income) loss attributable to non-controlling interest   |   |               | 2,440      |   |             |   | (3,987 | ) |   |   | (65,335 | ) |   |   | 114,632 |   |
|                                                         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Magnum Hunter Resources Corporation |   |               | (5,547,553 | )      |             |   | (3,393,576 | ) |   |   | (9,334,166 | ) |   |   | (4,764,859 | ) |
|                                                         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Dividend on Preferred Stock                                  |   |               | (445,950   | )      |             |   | - |   |   |   | (708,396 | ) |   |   | - |   |
|                                                         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to common shareholders                 |   | $                  | (5,993,503 | )      |             | $      | (3,393,576 | ) |   | $ | (10,042,562 | ) |   | $ | (4,764,859 | ) |
|                                                         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Loss per common share                                        |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                            |   | $                  | (0.10      | )      |             | $      | (0.09 | ) |   | $ | (0.17 | ) |   | $ | (0.13 | ) |
|                                                         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                            |   |               | 62,153,376 |   |             |   | 36,797,771 |   |   |   | 58,968,651 |   |   |   | 36,778,129 |   |

----

|                                                                                  |   | Number    |       |   |     |   |       |   |   |   | Additional |   |   |        |        |   |     |   |        |           |   |   |       |   |
|---------------------------------------------------------------------------------------|--------|-----------|------------|--------|----------|--------|------------|--------|--------|--------|------------|--------|--------|-------------|-------------|--------|----------|--------|-------------|----------------|--------|--------|------------|--------|
|                                                                                  |   | of Shares |       |   | Deposit  |   |       | Common |   |   | Paid in    |   |   | Accumulated |        |   | Treasury |   |        | Noncontrolling |   |   | Total      |   |
|                                                                                  |   | of Common |       |   | on Triad |   |       | Stock  |   |   | Capital    |   |   | Deficit     |        |   | Stock    |   |        | Interest       |   |   | Equity     |   |
|  BALANCE, January 1, 2010                                                        |   |      | 50,591,610 |   |     | $      | (1,310,357 | )      |   | $      | 505,916    |   |   | $           | 71,936,306  |   |     | $      | (33,135,693 | )              |   | $      | -          |   |   | $ | 1,321,753 |   |   | $ | 39,317,925 |   |
| Restricted stock issued to employees and directors                                    |   |      | 2,344,243  |   |     |   | -          |   |   |   | 23,443     |   |   |        | 246,322     |   |     |   | -           |           |   |   | -          |   |   |   | - |   |   |   | 269,765 |   |
| Stock compensation                                                                    |   |      | -          |   |     |   | -          |   |   |   | -          |   |   |        | 3,853,122   |   |     |   | -           |           |   |   | -          |   |   |   | - |   |   |   | 3,853,122 |   |
| Stock Options surrendered by holder for cash payment                                  |   |      | -          |   |     |   | -          |   |   |   | -          |   |   |        | (115,500    | )      |     |   | -           |           |   |   | -          |   |   |   | - |   |   |   | (115,500 | ) |
| Issued 55,932 shares of common stock for payment of services                          |   |      | 55,932     |   |     |   | -          |   |   |   | 559        |   |   |        | 164,441     |   |     |   | -           |           |   |   | -          |   |   |   | - |   |   |   | 165,000 |   |
| Issued shares of Series C Preferred Stock                                             |   |      | -          |   |     |   | -          |   |   |   | -          |   |   |        | (306,355    | )      |     |   | -           |           |   |   | -          |   |   |   | - |   |   |   | (306,355 | ) |
| Issued shares of Common Stock for cash                                                |   |      | 8,532,522  |   |     |   | -          |   |   |   | 85,325     |   |   |        | 24,337,626  |   |     |   | -           |           |   |   | -          |   |   |   | - |   |   |   | 24,422,951 |   |
| Issued shares of Common Stock upon exercise of warrants                               |   |      | 6,074,854  |   |     |   | -          |   |   |   | 60,749     |   |   |        | 12,930,211  |   |     |   | -           |           |   |   | -          |   |   |   | - |   |   |   | 12,990,960 |   |
| Issued 7,500 shares of Common Stock upon stock option exercise                        |   |      | 7,500      |   |     |   | -          |   |   |   | 75         |   |   |        | 8,700       |   |     |   | -           |           |   |   | -          |   |   |   | - |   |   |   | 8,775 |   |
| Issued shares of Common Stock upon redemption of Series B Convertible Preferred Stock |   |      | 1,000,000  |   |     |   | -          |   |   |   | 10,000     |   |   |        | 3,722,000   |   |     |   | -           |           |   |   | -          |   |   |   | - |   |   |   | 3,732,000 |   |
| Dividends on Series B Convertible Preferred                                           |   |      | -          |   |     |   | -          |   |   |   | -          |   |   |        | -           |   |     |   | (130,625    | )              |   |   | -          |   |   |   | - |   |   |   | (130,625 | ) |
| Dividends on Series C Cumulative Perpetual Preferred                                  |   |      | -          |   |     |   | -          |   |   |   | -          |   |   |        | -           |   |     |   | (577,771    | )              |   |   | -     |   |   |   | - |   |   |   | (577,771 | ) |
| 761,652 shares of Common Stock as deposit on Triad Acquisition returned to treasury   |   |      | -          |   |     |   | 1,310,357  |   |   |   | -          |   |   |        | -           |   |     |   | -           |           |   |   | (1,310,357 | )      |   |   | - |   |   |   | - |   |
|                                                                                  |   |      |       |   |     |   |       |   |   |   |       |   |   |        |        |   |     |   |        |           |   |   |       |   |   |   |   |   |   |   |   |   |
| Net loss                                                                              |   |      | -          |   |     |   | -          |   |   |   | -          |   |   |        | -           |   |     |   | (9,334,166  | )              |   |   | -          |   |   |   | 65,335 |   |   |   | (9,268,831 | ) |
|  BALANCE, June 30, 2010                                                          |   |      | 68,606,661 |   |     | $      | -          |   |   | $      | 686,067    |   |   | $           | 116,776,873 |   |     | $      | (43,178,255 | )              |   | $      | (1,310,357 | )      |   | $ | 1,387,088 |   |   | $ | 74,361,416 |   |

----

|                                                                            |   | Six Months Ended |        |
|---------------------------------------------------------------------------------|--------|------------------|-------------|
|                                                                            |   | June 30,         |        |
|                                                                            |   | 2010             |        |   | 2009 |   |
| Cash flows from operating activities                                            |   |             |        |   |   |   |
| Net loss attributable to Magnum Hunter Resources Corporation                    |   | $                | (9,334,166  | ) |   | $ | (4,764,859 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |   |             |        |   |   |   |   |   |
| Non-controlling Interest                                                        |   |             | 65,335      |   |   |   | (114,632 | ) |
| Depletion, depreciation, and accretion                                          |   |             | 4,849,063   |   |   |   | 2,106,862 |   |
| Amortization of deferred financing costs included in interest expense           |   |             | 540,520     |   |   |   | 205,805 |   |
| Dry hole cost                                                                   |   |             | -           |   |   |   | 30,339 |   |
| Share based compensation                                                        |   |             | 4,122,887   |   |   |   | 712,273 |   |
| Unrealized (gain) loss on derivative contracts                                  |   |             | 678,681     |   |   |   | 3,029,178 |   |
| Gain on sale of assets                                                          |   |             | (29,949     | ) |   |   | - |   |
| Changes in operating assets and liabilities:                                    |   |             |        |   |   |   |   |   |
| Accounts receivable                                                             |   |             | (1,407,965  | ) |   |   | (253,431 | ) |
| Inventory                                                                       |   |             | 53,425      |   |   |   | - |   |
| Prepaid expenses                                                                |   |             | (403,243    | ) |   |   | (133,237 | ) |
| Accounts payable                                                                |   |             | 751,224     |   |   |   | 161,708 |   |
| Revenue payable                                                                 |   |             | (62,838     | ) |   |   | 76,500 |   |
| Accrued liabilities                                                             |   |             | 3,465,791   |   |   |   | 197,740 |   |
| Net cash provided by operating activities                                       |   |             | 3,288,765   |   |   |   | 1,254,246 |   |
|                                                                            |   |             |        |   |   |   |   |   |
| Cash flows from investing activities                                            |   |             |        |   |   |   |   |   |
| Capital expenditures                                                            |   |             | (17,911,755 | ) |   |   | (7,830,600 | ) |
| Advances                                                                        |   |             | 697,188     |   |   |   | - |   |
| Cash paid in acquisition of Triad, net of cash acquired of $3,710,000           |   |             | (59,500,299 | ) |   |   | - |   |
| Proceeds from sale of assets                                                    |   |             | 29,949      |   |   |   | - |   |
| Deposits                                                                        |   |             | (966,790    | ) |   |   | - |   |
| Net cash used in investing activities                                           |   |             | (77,651,707 | ) |   |   | (7,830,600 | ) |
|                                                                            |   |             |        |   |   |   |   |   |
| Cash flows from financing activities                                            |   |             |        |   |   |   |   |   |
| Proceeds from sale of common stock                                              |   |             | 24,422,951  |   |   |   | - |   |
| Issue Series C Cumulative Perpetual Preferred Stock shares, net of costs        |   |             | 9,176,395   |   |   |   | - |   |
| Proceeds from exercise of warrants                                              |   |             | 12,990,960  |   |   |   | - |   |
| Cash paid upon conversion of Series B Preferred Stock                           |   |             | (11,250,000 | ) |   |   | - |   |
| Options exercised                                                               |   |             | 8,775       |   |   |   | - |   |
| Options surrendered for cash                                                    |   |             | (115,500    | ) |   |   | - |   |
| Preferred stock dividend paid                                                   |   |             | (734,050    | ) |   |   | - |   |
| Proceeds from revolving credit borrowings                                       |   |             | 70,000,000  |   |   |   | - |   |
| Principal payment on revolving credit                                           |   |             | (25,000,000 | ) |   |   | - |   |
| Proceeds from loan                                                              |   |             | 433,316     |   |   |   | 1,217,336 |   |
| Principal payment on loan                                                       |   |             | (575,989    | ) |   |   | (83,829 | ) |
| Payment of deferred financing costs                                             |   |             | (2,630,071  | ) |   |   | - |   |
| Net cash provided by financing activities                                       |   |             | 76,726,787  |   |   |   | 1,133,507 |   |
|                                                                            |   |             |        |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                       |   |             | 2,363,845   |   |   |   | (5,442,847 | ) |
| Cash and cash equivalents, beginning of period                                  |   |             | 2,281,568   |   |   |   | 6,120,402 |   |
|                                                                            |   |             |        |   |   |   |   |   |
| Cash and cash equivalents, end of period                                        |   | $                | 4,645,413   |   |   | $ | 677,555 |   |
|                                                                            |   |             |        |   |   |   |   |   |
| Supplemental disclosure of cash flow information                                |   |             |        |   |   |   |   |   |
| Cash paid for interest                                                          |   | $                | 1,229,622   |   |   | $ | 972,381 |   |
|                                                                            |   |             |        |   |   |   |   |   |
| Non-cash transactions                                                           |   |             |        |   |   |   |   |   |
| Series B Preferred stock issued for acquisition of Triad                        |   | $                | 14,982,000  |   |   | $ | - |   |
| Debt assumed in the acquisition of Triad                                        |   | $                | 3,411,816   |   |   | $ | - |   |
| Common stock issued for payment of services                                     |   | $                | 165,000     |   |   | $ | - |   |
| Common stock issued in conversion of Series B Preferred stock                   |   | $                | 3,732,000   |   |   | $ | - |   |

----

----

| ● | Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                  |
| ● | Level 2 — Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs or significant value drivers are observable |
|    |                                                                                                                                                                                                                                                                  |
| ● | Level 3 — Significant inputs to the valuation model are unobservable                                                                                                                                                                                            |

----

| Fair value measurements on a recurring basis |    |
|----------------------------------------------|---------|
| June 30, 2010                                |    |
|                                         | Level 1 |   | Level 2 |   | Level 3 |   |
| Commodity derivatives                        |    | $ | - |   |   | $ | 1,605,869 |   |   | $ | - |   |
|                                         |    |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets at fair value                   |    | $ | - |   |   | $ | 1,605,869 |   |   | $ | - |   |
|                                         |    |   |   |   |   |   |   |   |   |   |   |   |
| Commodity derivatives                        |    | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                         |    |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities at fair value              |    | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                         |    |   |   |   |   |   |   |   |   |   |   |   |

| Fair value measurements on a recurring basis |    |
|----------------------------------------------|---------|
| December 31, 2009                            |    |
|                                         | Level 1 |   | Level 2 |   | Level 3 |   |
| Commodity derivatives                        |    | $ | - |   |   | $ | 2,353,686 |   |   | $ | - |   |
|                                         |    |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets at fair value                   |    | $ | - |   |   | $ | 2,353,686 |   |   | $ | - |   |
|                                         |    |   |   |   |   |   |   |   |   |   |   |   |
| Commodity derivatives                        |    | $ | - |   |   | $ | 69,136 |   |   | $ | - |   |
|                                         |    |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities at fair value              |    | $ | - |   |   | $ | 69,136 |   |   | $ | - |   |

----

| Fair value of total purchase price:                                      |   |   |        |
|--------------------------------------------------------------------------|--------|--------|-------------|
| Cash consideration                                                       |   | $      | 8,000,000   |   |
| Payment of Triad senior and other debt                                   |   |   | 55,210,910  |   |
| Assumption of equipment indebtedness                                     |   |   | 3,411,816   |   |
| Issuance of  $15,000,000 stated value Series B Preferred Stock |   |   | 14,982,000  |   |
| Total                                                                    |   | $      | 81,604,726  |   |
|                                                                     |   |   |        |   |
| Amounts recognized for assets acquired and liabilities assumed:          |   |   |        |   |
| Working capital                                                          |   | $      | 4,623,325   |   |
| Proved oil and gas properties                                            |   |   | 49,708,193  |   |
| Unproved oil and gas properties                                     |   |   | 20,276,000  |   |
| Gas gathering systems                                                    |   |   | 1,120,000   |   |
|  Field servicing equipment                                          |   |   | 8,138,000   |   |
| Asset retirement obligation                                              |   |   | ( 2,260,792 | ) |
| Total                                                                    |   | $      | 81,604,726  |   |
|                                                                     |   |   |        |   |
| Working capital acquired was as follows:                                 |   |   |        |   |
| Cash                                                                     |   | $      | 3,710,610   |   |
| Accounts receivable                                                      |   |   | 2,967,346   |   |
| Prepaid expenses                                                         |   |   | 222,521     |   |
| Inventory                                                                |   |   | 684,656     |   |
| Other current assets                                                     |   |   | 553,139     |   |
| Accounts payable                                                         |   |   | (1,221,753  | ) |
| Accrued liabilities                                                      |   |   | (365,256    | ) |
| Revenue payable                                                          |   |   | (1,927,938  | ) |
| Total working capital acquired                                           |   | $      | 4,623,325   |   |

----

|                                                         |   | (in thousands)              |   |
|--------------------------------------------------------------|--------|-----------------------------|--------|
|                                                         |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|                                                         |   | 2009                        |   |   | 2010 |   |   | 2009 |   |
| Total operating revenue                                      |   | $                           | 8,822  |   |   | $ | 19,764 |   |   | $ | 16,003 |   |
| Total operating costs and expenses                           |   | $                           | 8,802  |   |   | $ | 29,477 |   |   | $ | 16,955 |   |
| Operating income (loss)                                      |   | $                           | 20     |   |   | $ | (9,713 | ) |   | $ | (952 | ) |
| Interest expense and other                                   |   | $                           | (4,627 | ) |   | $ | (435 | ) |   | $ | (5,068 | ) |
| Net loss attributable to Magnum Hunter Resources Corporation |   | $                           | (4,607 | ) |   | $ | (10,148 | ) |   | $ | (6,020 | ) |
| Dividends on preferred stock                                 |   | $                           | (279   | ) |   | $ | (906 | ) |   | $ | (557 | ) |
| Net loss attributable to common stockholders                 |   | $                           | (4,886 | ) |   | $ | (11,054 | ) |   | $ | (6,577 | ) |
| Loss per common share, basic and diluted                     |   | $                           | (0.10  | ) |   | $ | (0.19 | ) |   | $ | (0.13 | ) |

----

| Commodity   |   | Type          |   | Volume/Month                                                         |   | Duration              |   | Price  |                                                                                                                                           | Value  |
|-------------|--------|---------------|--------|----------------------------------------------------------------------|--------|-----------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Oil         |   | SWAP          |   |           670 Bbls |   | Jul 10 - Dec 10       |   | $      |                      81.65            |   | $ |                18,907 |
| Oil         |   | SWAP          |   |           435 Bbls |   | Jan 11 - Dec 11       |   |   |                      85.25            |   |   |                29,356 |
| Oil         |   | Collar        |   | 5,000 Bbls                                                           |   | Jul 10 – Dec 11 |   |   |  70.00 - 82.25                                                                                                                            |   |   |            (160,774) |
| Oil         |   | Put           |   | 4,800 Bbls                                                           |   | Jan 11 – Dec 11 |   |   |                      80.00            |   |   |                39,698 |
| Oil         |   | Put           |   | 4,600 Bbls                                                           |   | Jan 12 – Dec 12 |   |   |                      80.00            |   |   |                69,944 |
| Oil         |   | Put           |   | 3,720 Bbls                                                           |   | Jul 10 – Dec 10 |   |   |                      75.00            |   |   |                61,531 |
| Oil         |   | Collar        |   | 4,178 Bbls                                                           |   | Jan 12 – Dec 12 |   |   |  80.00 - 100.00                                                                                                                           |   |   |              299,984 |
| Oil         |   | SWAP          |   | 2,500 Bbls                                                           |   | Jul 10 - Dec 10       |   |   |                      83.10            |   |   |                92,227 |
| Oil         |   | SWAP          |   | 2,250 Bbls                                                           |   | Jan 11 - Dec 11       |   |   |                      85.00            |   |   |                54,806 |
| Oil         |   | Call          |   | 4,562 Bbls                                                           |   | Jan 11 - Dec 11       |   |   |                      82.25            |   |   |              499,012 |
| Oil         |   | Call          |   | 4,562 Bbls                                                           |   | Jan 11 - Dec 11       |   |   |                      90.00            |   |   |            (337,955) |
| Oil         |   | Call          |   | 5,000 Bbls                                                           |   | Jul 10 - Dec 10       |   |   |                      90.00            |   |   |              (39,831) |
| Oil         |   | Call          |   | 5,000 Bbls                                                           |   | Jul 10 - Dec 10       |   |   |                      82.25            |   |   |                87,742 |
| Oil         |   | Call          |   | 6,133 Bbls                                                           |   | Jul 10 - Sep 10       |   |   |                      85.00            |   |   |              (15,958) |
| Oil         |   | Call          |   | 6,133 Bbls                                                           |   | Oct 10 - Dec 10       |   |   |                      90.00            |   |   |              (41,376) |
| Oil         |   | Call          |   | 1,400 Bbls                                                           |   | Jan 11 - Dec 11       |   |   |                      95.00            |   |   |              (80,495) |
| Oil         |   | Put           |   | 3,067 Bbls                                                           |   | Jul 10 - Dec 10       |   |   |                      80.00            |   |   |                39,594 |
| Oil         |   | Put           |   | 4,562 Bbls                                                           |   | Jan 11 - Dec 11       |   |   |                      52.00            |   |   |            (104,982) |
| Oil         |   | Put           |   | 5,000 Bbls                                                           |   | Jul 10 - Dec 10       |   |   |                      55.50            |   |   |              (14,555) |
| Oil         |   | Put           |   | 6,133 Bbls                                                           |   | Jul 10 - Sep 10       |   |   |                      70.00            |   |   |                25,973 |
| Oil         |   | Put           |   | 6,133 Bbls                                                           |   | Oct 10 - Dec 10       |   |   |                      70.00            |   |   |                66,987 |
| Oil         |   | Put           |   | 1,400 Bbls                                                           |   | Jan 11 - Dec 11       |   |   |                      60.00            |   |   |              (58,139) |
| Oil         |   | Put           |   | 1,400 Bbls                                                           |   | Jan 11 - Dec 11       |   |   |                      75.00            |   |   |              138,812 |
| Natural Gas |   | Collar        |   |        5,000 Mmbtu                |   | Jul 10 - Dec 10       |   |   |    5.50 - 7.75                                                                                                                  |   |   |                21,813 |
| Natural Gas |   | Collar        |   |      15,000 Mmbtu                           |   | Jul 10 - Dec 10       |   |   |   5.75 - 7.10                                                                                                                        |   |   |                78,300 |
| Natural Gas |   | Collar        |   |      12,500 Mmbtu                           |   | Jan 11 – Dec 11 |   |   |   5.00 - 8.20                                                                                                                        |   |   |                59,707 |
| Natural Gas |   | Collar        |   |        4,165 Mmbtu                |   | Jan 11 – Dec 11 |   |   |   5.00 - 8.95                                                                                                                        |   |   |                22,298 |
| Natural Gas |   | Collar        |   |      10,000 Mmbtu                           |   | Jan 12 – Dec 12 |   |   |   5.00 - 9.82                                                                                                                        |   |   |                45,245 |
| Natural Gas |   | Purchase Put  |   |        5,000 Mmbtu                |   | Jul 10 - Dec 10       |   |   |                        5.00 |   |   |                13,958 |
| Natural Gas |   | Sold Put      |   |        5,000 Mmbtu                |   | Jul 10 - Dec 10       |   |   |                        5.00 |   |   |              (13,958) |
| Natural Gas |   | Purchased Put |   |      15,000 Mmbtu                           |   | Jul 10 - Dec 10       |   |   |                        5.00 |   |   |                41,875 |
| Natural Gas |   | Sold Put      |   |      15,000 Mmbtu                           |   | Jul 10 - Dec 10       |   |   |                        5.00 |   |   |              (41,875) |
| Natural Gas |   | SWAP          |   | 3,400 Mmbtu                                                          |   | Jan 11 – Dec 11 |   |   |                        5.98 |   |   |                25,886 |
| Natural Gas |   | SWAP          |   | 3,000 Mmbtu                                                          |   | Jan 12 – Dec 12 |   |   |                        6.15 |   |   |                16,507 |
| Natural Gas |   | Collar        |   | 47,600 Mmbtu                                                         |   | Jan 11 – Dec 11 |   |   |  5.50 - 7.10                                                                                                                              |   |   |              317,304 |
| Natural Gas |   | Collar        |   | 27,350 Mmbtu                                                         |   | Jul 10 - Dec 10       |   |   |  5.00 - 6.70                                                                                                                              |   |   |                63,992 |
| Natural Gas |   | SWAP          |   | 27,350 Mmbtu                                                         |   | Jul 10 - Dec 10       |   |   |                        5.74 |   |   |              121,985 |
| Natural Gas |   | Collar        |   | 47,300 Mmbtu                                                         |   | Jan 12 – Dec 12 |   |   |  5.00 - 8.40                                                                                                                              |   |   |              150,229 |
| Natural Gas |   | SWAP          |   | 13,521 Mmbtu                                                         |   | Jul 10 - Nov 10       |   |   |                        5.03 |   |   |                12,095 |
|        |   |          |   |                                                                 |   |                  |   |   |                                                                                                                                           |   | $ |           1,605,869 |

----

|                                               |   | June 30, 2010 |      |
|----------------------------------------------------|--------|---------------|-----------|
| Asset retirement obligation at beginning of period |   | $             | 2,032,306 |   |
| Assumed in Triad acquisition                       |   |          | 2,260,792 |   |
| Liabilities incurred                               |   |          | 27,875    |   |
| Liabilities settled                                |   |          | -         |   |
| Accretion expense                                  |   |          | 190,813   |   |
| Revisions in estimated liabilities                 |   |          | -         |   |
| Asset retirement obligation at end of period       |   | $             | 4,511,786 |   |

|                                                                                                              |   | June 30, 2010 |       |
|-------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|
| Various equipment notes payable with maturity dates August 2010 to February 2015, interest rates of 0.00% - 9.24% |   | $             | 3,313,300  |   |
| Senior revolving credit facility due November 23, 2012, 4.5% at June 30, 2010                                     |   |          | 58,000,000 |   |
|                                                                                                              |   | $             | 61,313,300 |   |
| Less: current portion                                                                                             |   |          | (576,057   | ) |
| Total Long-Term Debt                                                                                              |   | $             | 60,737,243 |   |

| 2010       |   | $      | 267,435    |   |
|------------|--------|--------|------------|--------|
| 2011       |   |   | 574,990    |   |
| 2012       |   |   | 58,568,978 |   |
| 2013       |   |   | 561,032    |   |
| Thereafter |   |   | 1,340,865  |   |
| Total      |   | $      | 61,313,300 |   |

----

|                               |   |   |      |   | Weighted-      |   |
|------------------------------------|--------|--------|-----------|--------|----------------|--------|
|                               |   |   |      |   | Average        |   |
|                               |   | Shares |      |   | Exercise Price |   |
| Outstanding at beginning of period |   |   | 7,117,000 |   |           | $      | 0.93 |   |
| Granted                            |   |   | 2,508,500 |   |           | $      | 2.94 |   |
| Exercised                          |   |   | (7,500    | )      |           |   | 1.17 |   |
| Forfeited or expired               |   |   | (147,500  | )      |           | $      | 1.64 |   |
| Outstanding at end of period       |   |   | 9,470,500 |   |           | $      | 1.45 |   |
| Exercisable at June 30, 2010       |   |   | 6,701,875 |   |           | $      | 1.15 |   |

| Non-vested Options                |   | Shares |       |
|-----------------------------------|--------|--------|------------|
| Non-vested at beginning of period |   |   | 2,340,250  |   |
| Granted                           |   |   | 2,508,500  |   |
| Vested                            |   |   | (2,057,625 | ) |
| Forfeited                         |   |   | (22,500    | ) |
| non-vested at June 30, 2010       |   |   | 2,768,625  |   |

----

|                                                            |   | Six months Ended             |
|-----------------------------------------------------------------|--------|------------------------------|
|                                                            |   | June 30, 2010  (1) |
| Weighted average value per option granted during the period (2) |   | 2.21                         |
| Assumptions (3) :                                               |   |                         |
| Weighted average stock price volatility                         |   | 101.66                       |
| Weighted average risk free rate of return                       |   | 2.17%                        |
| Weighted average expected term                                  |   | 4.6 years                    |

----

| (1) | Our estimated future forfeiture rate is zero.                                                                                                      |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Calculated using the Black-Scholes fair value based method for service and performance based grants and the Lattice Model for market based grants. |
| (3) | The Company does not pay dividends on our common stock.                                                                                            |

| Non-vested Shares               |   | Shares |       |   | Weighted Average Price Per Share |   |
|---------------------------------|--------|--------|------------|--------|----------------------------------|--------|
| Non-vested at December 31, 2009 |   |   | 2,310,000  |   |                             | $      | 0.44 |   |
| Granted                         |   |   | 46,062     |   |                             | $      | 2.91 |   |
| Vested                          |   |   | (2,251,062 | )      |                             | $      | 0.44 |   |
| Forfeited                       |   |   | -          |   |                             |   | - |   |
| Non-vested at June 30, 2010     |   |   | 105,000    |   |                             | $      | 1.34 |   |

----

----

|                                           |   | Six Months Ended June 30, 2010 |      |
|------------------------------------------------|--------|--------------------------------|-----------|
| Noncontrolling interest at beginning of period |   |                           | 1,321,753 |   |
| Income  to noncontrolling interest   |   |                           | 65,335    |   |
| Noncontrolling interest at end of period       |   |                           | 1,387,088 |   |

----

| Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

| ● | global economic and financial market conditions, |
|---------|--------------------------------------------------|
|    |                                             |
| ● | our business strategy,                           |
|    |                                             |
| ● | estimated quantities of oil and gas reserves,    |
|    |                                             |
| ● | uncertainty of commodity prices in oil and gas,  |
|    |                                             |
| ● | disruption of credit and capital markets,        |
|    |                                             |
| ● | our financial position,                          |
|    |                                             |
| ● | our cash flow and liquidity,                     |
|    |                                             |
| ● | replacing our oil and gas reserves,              |

| ● | our inability to retain and attract key personnel,                                                                                                                 |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                               |
| ● | uncertainty regarding our future operating results,                                                                                                                |
|    |                                                                                                                                                               |
| ● | uncertainties in exploring for and producing oil and gas,                                                                                                          |
|    |                                                                                                                                                               |
| ● | high costs, shortages, delivery delays or unavailability of drilling rigs, equipment, labor or other services,                                                     |
|    |                                                                                                                                                               |
| ● | disruptions to, capacity constraints in or other limitations on the pipeline systems which deliver our gas and other processing and transportation considerations, |

----

| ● | our inability to obtain additional financing necessary to fund our operations and capital expenditures and to meet our other obligations, |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                      |
| ● | competition in the oil and gas industry,                                                                                                  |
|    |                                                                                                                                      |
| ● | marketing of oil, gas and natural gas liquids,                                                                                            |
|    |                                                                                                                                      |
| ● | exploitation of our current asset base or property acquisitions,                                                                          |
|    |                                                                                                                                      |
| ● | the effects of government regulation and permitting and other legal requirements,                                                         |
|    |                                                                                                                                      |
| ● | plans, objectives, expectations and intentions contained in this report that are not historical, and                                      |
|    |                                                                                                                                      |
| ● | other factors discussed in our 2009 Annual Report on Form 10-K and subsequent filings, including this Quarterly Report on Form 10-Q.      |

| ● | $55.2 million repayment of Triad senior debt via drawing under the new Restated Credit Facility discussed below; |
|---------|------------------------------------------------------------------------------------------------------------------|

| ● | $15.0 million of our Series B Redeemable Convertible Preferred; |
|---------|-----------------------------------------------------------------|

| ● | $8.0 million in cash ($4.3 million net); and |
|---------|----------------------------------------------|

| ● | Assumption of approximately $3.4 million of equipment indebtedness. |
|---------|---------------------------------------------------------------------|

----

| ● | $40.4 million of common equity financings including, (i) $11.1 million in two private placements on November 10 and 11, 2009 at price of $1.73 per share;  (ii) $3.8 million in private placement offering which included certain members of senior management and members of the Board of Directors at an average price of $1.65 per share; and, (iii) approximately $25.5 million of common stock through At The Market (ATM) offerings at an average price of $2.80 per share. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | $18.0 million in gross proceeds from the issuance of our 10.25% Series C Cumulative Perpetual Preferred Stock, at a price of $25.00 per share through (i) $5.4 million in underwritten public offering; and (ii) $12.6 million through our ATM. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | $13.0 million in gross proceeds from exercise of 1,362,504 of our $2.50 common stock warrants and 4,792,350 of our $2.00 common stock warrants. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| Description                              |   |   |     |
|------------------------------------------|--------|--------|----------|
| Proved Developed Reserves                |   |   |     |
| Oil (MBbls)                              |   |   | 3,914.4  |   |
| NGLs (MBbls)                             |   |   | 553.0    |   |
| Natural Gas (MMcf)                       |   |   | 13,801.3 |   |
| Total Proved Developed Reserves (Mboe)   |   |   | 6,767.6  |   |
|                                     |   |   |     |   |
| Proved Undeveloped Reserves              |   |   |     |   |
| Oil (MBbls)                              |   |   | 3,322.4  |   |
| NGLs (MBbls)                             |   |   | 412.2    |   |
| Natural Gas (MMcf)                       |   |   | 7,975.9  |   |
| Total Proved Undeveloped Reserves (Mboe) |   |   | 5,063.9  |   |
|                                     |   |   |     |   |
| Total Proved Reserves (MBoe)             |   |   | 11,831.5 |   |
|                                     |   |   |     |   |
| SEC PV-10 Value ($MM)                    |   | $      | 173.3    |   |
| Standardized Measure ($MM)               |   | $      | 130.3    |   |

----

|                                                                               |   | ($ in Millions) |   |
|------------------------------------------------------------------------------------|--------|-----------------|--------|
|                                                                               |   | As of June 30,  |   |
|                                                                               |   | 2010            |   |
| Future cash inflows                                                                |   | $               | 648.2  |   |
| Future production costs                                                            |   |            | 221.3  |   |
| Future development cost                                                            |   |            | 55.6   |   |
| Future income tax expense                                                          |   |            | 78.8   |   |
| Future net cash flows                                                              |   |            | 292.4  |   |
| 10% annual discount for estimated timing of cash flows                             |   |            | 162.1  |   |
| Standardized measure of discounted futurenet cash flows related to proved reserves |   | $               | 130.3  |   |
|                                                                               |   |            |   |   |
| Reconciliation of Non-GAAP Measure                                                 |   |            |   |   |
| PV-10                                                                              |   |            | 173.3  |   |
| Less: Income taxes                                                                 |   |            |   |   |
| Undiscounted future income taxes                                                   |   |            | (78.8  | ) |
| 10% discount factor                                                                |   |            | 35.9   |   |
| Future discounted income taxes                                                     |   |            | (43.0  | ) |
|                                                                               |   |            |   |   |
| Standardized measure of discounted future net cash flows                           |   | $               | 130.3  |   |

----

|                                                            |   | Three Months Ended |   |   | Six Months Ended |   |
|-----------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                            |   | June 30,           |   |   | June 30,         |   |
|                                                            |   | 2010               |   |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| Revenues (in thousands)                                         |   |               |   |   |             |   |   |   |   |   |   |   |
| Oil                                                             |   | $                  | 6,621  |   |             | $      | 1,888 |   |   | $ | 11,714 |   |   | $ | 3,017 |   |
| Gas                                                             |   |               | 1,260  |   |             |   | 326 |   |   |   | 3,078 |   |   |   | 721 |   |
| NGLs                                                            |   |               | 463    |   |             |   | 215 |   |   |   | 847 |   |   |   | 508 |   |
| Total oil and gas sales                                         |   |               | 8,344  |   |             |   | 2,429 |   |   |   | 15,639 |   |   |   | 4,246 |   |
| Field operations revenue                                        |   | $                  | 1,397  |   |             | $      | 2 |   |   | $ | 1,916 |   |   | $ | 2 |   |
|                                                            |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Production                                                      |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Oil (MBbls)                                                     |   |               | 93     |   |             |   | 37 |   |   |   | 163 |   |   |   | 70 |   |
| Gas (MMcfs)                                                     |   |               | 330    |   |             |   | 128 |   |   |   | 598 |   |   |   | 250 |   |
| NGLs (MBbls)                                                    |   |               | 12     |   |             |   | 11 |   |   |   | 21 |   |   |   | 23 |   |
| Total (MBoe)                                                    |   |               | 160    |   |             |   | 69 |   |   |   | 283 |   |   |   | 135 |   |
| Total (Boe/d)                                                   |   |               | 1,755  |   |             |   | 761 |   |   |   | 1,566 |   |   |   | 746 |   |
|                                                            |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Average prices                                                  |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Oil (per Bbl)                                                   |   | $                  | 71.20  |   |             | $      | 51.19 |   |   | $ | 71.76 |   |   | $ | 42.95 |   |
| Gas (per Mcf)                                                   |   |               | 3.81   |   |             |   | 2.55 |   |   |   | 5.15 |   |   |   | 2.89 |   |
| NGLs (per Bbl)                                                  |   |               | 39.80  |   |             |   | 19.44 |   |   |   | 41.32 |   |   |   | 21.95 |   |
| Total average price (per Boe)                                   |   | $                  | 52.25  |   |             | $      | 35.09 |   |   | $ | 55.19 |   |   | $ | 31.45 |   |
|                                                            |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses (per Boe)                                    |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Lease operating expense (see Footnote 3)                        |   | $                  | 19.01  |   |             | $      | 14.79 |   |   | $ | 18.55 |   |   | $ | 15.13 |   |
| Severance tax expense                                           |   |               | 3.87   |   |             |   | 2.24 |   |   |   | 3.68 |   |   |   | 2.06 |   |
| Marketing expense                                               |   |               | 1.22   |   |             |   | 1.36 |   |   |   | 1.07 |   |   |   | 1.45 |   |
| Exploration expense                                             |   |               | 2.34   |   |             |   | 0.28 |   |   |   | 2.91 |   |   |   | 0.84 |   |
| Field operations expense                                        |   |               | 9.06   |   |             |   | - |   |   |   | 6.50 |   |   |   | - |   |
| General and administrative expense (see Footnote 1 and 2 below) |   |               | 40.71  |   |             |   | 20.91 |   |   |   | 46.83 |   |   |   | 16.25 |   |
| Depletion, depreciation and accretion                           |   |               | 20.70  |   |             |   | 11.55 |   |   |   | 17.11 |   |   |   | 15.61 |   |

----

| (1)  | General and administrative expense includes (i) acquisition related expenses of $0.56 per Boe and none, (ii) bonus accrual of $6.49 per Boe and none, (iii) non-cash stock compensation of $17.34 per Boe and $7.50 per Boe and (iv) non-recurring legal expenses of $2.30 per Boe and none for the three month periods ended June 30, 2010 and 2009, respectively. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | General and administrative expense includes (i) acquisition related expenses of $4.92 per Boe and none, (ii) bonus accrual of $10.55 per Boe and none, (iii) non-cash stock compensation of $14.55 per Boe and $5.28 per Boe, and (iv) non-recurring legal expenses of $1.30 per Boe and none for the six month periods ended June 30, 2010 and 2009, respectively. |
| (3)  | Lease operating expense includes nonrecurring LOE of $3.22 per Boe and $2.95 per Boe, respectively, for the three and six months ended June 30, 2010.                                                                                                                                                                                                               |

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|                                                 | Six Months Ended June 30, |   |
|------------------------------------------------------|---------------------------|--------|
|                                                 | 2010                      |   | 2009 |   |
|                                                 | (In thousands)            |   |
| Cash flows provided by operating activities          |                      | $      | 3,289 |   |   | $ | 1,254 |   |
| Cash flows used in investing activities              |                      |   | (77,652 | ) |   |   | (7,831 | ) |
| Cash flows provided by financing activities          |                      |   | 76,727 |   |   |   | 1,134 |   |
| Net increase (decrease) in cash and cash equivalents |                      | $      | 2,364 |   |   | $ | (5,443 | ) |

----

|                                                      | Year Ending            |   |
|-----------------------------------------------------------|------------------------|--------|
|                                                      | December 31, 2010 |   |
|                                                      | Revised                |   | Original |   |
|                                                      | (In millions)          |   |
| Appalachian Basin                                         |                   |   |   |   |   |   |
| Eureka Hunter Pipeline                                    |                   | $      | 8.5 |   |   | $ | 8.5 |   |
| Marcellus Shale leases and drilling                       |                   |   | 9.0 |   |   |   | 8.5 |   |
| South Texas – Eagle Ford Shale                      |                   |   | 30.7 |   |   |   | 7.0 |   |
| West Texas & Other – Cinco Terry, East Chalkley |                   |   | 6.8 |   |   |   | 1.0 |   |
| Total capital expenditures                                |                   | $      | 55.0 |   |   | $ | 25.0 |   |

----

----

| Contractual Obligations                       |   | Total  |   |   | 2010   |   |   |   | 2011 - 2012 |   |   |   | 2013 - 2014 |   |   | After 2014 |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|------------|--------|
| Long-term debt(1)                             |   | $      | 61,313 |   |   | $      | 267    |   |        | $      | 59,144 |   |        | $      | 1,114  |       |   | $ | 788 |   |
| Interest on long-term debt(2)                 |   |   | 7,058  |   |   |   | 1,409  |   |        |   | 5,398  |   |        |   | 202    |       |   |   | 49 |   |
| Operating lease obligations(3)                |   |   | 2,178  |   |   |   | 324    |   |        |   | 1,007  |   |        |   | 379    |       |   |   | 468 |   |
| Asset retirement obligations(4)               |   |   | 4,512  |   |   |   | -      |   |        |   | 716    |   |        |   | 109    |       |   |   | 3,687 |   |
| Employment agreements with executive officers |   |   | 1,179  |   |   |   | 590    |   |        |   | 589    |   |        |   | -      |       |   |   | - |   |
| Total                                         |   | $      | 76,240 |   |   | $      | 2,590  |   |        | $      | 66,854 |   |        | $      | 1,804  |       |   | $ | 4,992 |   |

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| (1) |   | See Note 8 to our consolidated financial statements for a discussion of our long-term debt.                                                                                                                        |
|-----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | Interest payments have been calculated by applying the interest rate of 4.5% that was effective at June 30, 2010 on our revolving credit facility debt and 6.25% to the outstanding term debt balance at June 30, 2010. |
| (3) |   | Operating lease obligations are for office space and equipment.                                                                                                                                                         |
| (4) |   | See Note 7 to our consolidated financial statements for a discussion of our asset retirement obligations.                                                                                                          |

| Item 3. | Quantitative and qualitative disclosures about market risk. |
|--------------|-------------------------------------------------------------|

| Item 4. | Controls and procedures. |
|--------------|--------------------------|

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| ExhibitNo. |   |  Description                                                                                                                                                                                                                                                                                                                                        |
|------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                                                                                                                                                                     |
| 4.1        |   | Certificate of Amendment of Certificate of Designation of Rights and Preferences of 10.25% Series C Cumulative Perpetual Preferred Stock (filed herewith).                                                                                                                                                                                               |
|       |   |                                                                                                                                                                                                                                                                                                                                                     |
| 10.1       |   | First Amendment to Credit Agreement, dated as of May 13, 2010, by and among the Company, Bank of Montreal, as administrative agent, Capital One, N.A., as syndication agent, and the guarantors and lenders party thereto (incorporated by reference from Magnum Hunter Resources Corporation’s Current Report on Form 8-K filed on May 19, 2010). |
|       |   |                                                                                                                                                                                                                                                                                                                                                     |
| 10.2       |   | At the Market Sales Agreement by and among the Company and McNicoll, Lewis & Vlack LLC as sales agent (incorporated by reference from Magnum Hunter Resources Corporation’s Current Report on Form 8-K filed on June 24, 2010).                                                                                                                |
|       |   |                                                                                                                                                                                                                                                                                                                                                     |
| 10.3       |   | At the Market Sales Agreement by and among the Company and McNicoll, Lewis & Vlack LLC as sales agent (incorporated by reference from Magnum Hunter Resources Corporation’s Current Report on Form 8-K filed on June 25, 2010).                                                                                                                |
|       |   |                                                                                                                                                                                                                                                                                                                                                     |
| 31.1       |   | Certification of Chairman Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 (filed herewith).                                                                                                                                                                                                                                            |
|       |   |                                                                                                                                                                                                                                                                                                                                                     |
| 31.2       |   | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934 (filed herewith).                                                                                                                                                                                                                             |
|       |   |                                                                                                                                                                                                                                                                                                                                                     |
| 32         |   | Certification of Chairman and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 (filed herewith).                                                                                                                                                                                                                                               |

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|                  | MAGNUM HUNTER RESOURCES CORPORATION |                                 |
|-----------------------|-------------------------------------|--------------------------------------|
|                  |                                |                                 |   |
| Date: August 12, 2010 |                                | /s/ Gary C. Evans               |   |
|                  |                                | Gary C. Evans,                       |   |
|                  |                                | Chairman and Chief Executive Officer |   |
|                  |                                |                                 |   |

|                  |   |                                                 |
|-----------------------|--------|------------------------------------------------------|
|                  |   |                                                 |   |
| Date: August 12, 2010 |   | /s/ Ronald D. Ormand                            |   |
|                  |   | Ronald D. Ormand,                                    |   |
|                  |   | Executive Vice President and Chief Financial Officer |   |
|                  |   |                                                 |   |

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