----

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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                                                                                    |   |
|                                                                                                             |   |
| Item 1. Financial Statements (Unaudited):                                                                   | 1      |
|                                                                                                             |   |
| Condensed Consolidated Balance Sheets as of September 30, 2010 and December 31, 2009                             | 1      |
|                                                                                                             |   |
| Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2010 and 2009  | 2      |
|                                                                                                             |   |
| Condensed Consolidated Statements of Shareholders’ Equity for the Nine Months Ended September 30, 2010     | 3      |
|                                                                                                             |   |
| Condensed Consolidated Statements of Cash Flows for the  Nine Months Ended September 30, 2010 and 2009 | 4      |
|                                                                                                             |   |
| Notes to Condensed Consolidated Financial Statements                                                             | 6      |
|                                                                                                             |   |
| Condensed Combined Financial Statements of Triad Hunter, LLC and Hunter Disposal, LLC                            | 21     |
|                                                                                                             |   |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations         | 28     |
|                                                                                                             |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                               | 39     |
|                                                                                                             |   |
| Item 4T. Controls and Procedures                                                                            | 39     |
|                                                                                                             |   |
| Part II. OTHER INFORMATION                                                                                       | 40     |
|                                                                                                             |   |
| Item 1.  Legal Proceedings                                                                             | 40     |
|                                                                                                             |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                              | 40     |
|                                                                                                             |   |
| Item 6. Exhibits                                                                                            | 41     |
|                                                                                                             |   |
| SIGNATURES                                                                                                       | 42     |

----

|                                                                                                                                                                                                                                                                              |   | September 30, |        |    | December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|---------|--------------|--------|
|                                                                                                                                                                                                                                                                              |   | 2010          |        |    | 2009         |   |
| ASSETS                                                                                                                                                                                                                                                                            |   |          |        |    |         |   |
| CURRENT ASSETS:                                                                                                                                                                                                                                                                   |   |          |        |    |         |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                         |   | $             | 836,601     |    |         | $      | 2,281,568 |   |
| Accounts receivable                                                                                                                                                                                                                                                               |   |          | 7,002,332   |    |         |   | 3,236,043 |   |
| Derivative assets                                                                                                                                                                                                                                                                 |   |          | 573,657     |    |         |   | 1,261,534 |   |
| Prepaids and other current assets                                                                                                                                                                                                                                                 |   |          | 1,433,235   |    |         |   | 94,113 |   |
| Total current assets                                                                                                                                                                                                                                                              |   |          | 9,845,825   |    |         |   | 6,873,258 |   |
|                                                                                                                                                                                                                                                                              |   |          |        |    |         |   |   |   |
| PROPERTY AND EQUIPMENT (Net of Accumulated Depletion and Depreciation):                                                                                                                                                                                                           |   |          |        |    |         |   |   |   |
| Oil and natural gas properties, successful efforts accounting                                                                                                                                                                                                                     |   |          |        |    |         |   |   |   |
| Unproved                                                                                                                                                                                                                                                                          |   |          | 48,169,404  |    |         |   | 11,887,483 |   |
| Proved properties                                                                                                                                                                                                                                                                 |   |          | 104,232,733 |    |         |   | 43,995,567 |   |
| Equipment and other fixed assets                                                                                                                                                                                                                                                  |   |          | 15,065,160  |    |         |   | 1,655,582 |   |
| Total property and equipment, net                                                                                                                                                                                                                                                 |   |          | 167,467,297 |    |         |   | 57,538,632 |   |
|                                                                                                                                                                                                                                                                              |   |          |        |    |         |   |   |   |
| OTHERS ASSETS:                                                                                                                                                                                                                                                                    |   |          |        |    |         |   |   |   |
| Derivative assets                                                                                                                                                                                                                                                                 |   |          | 529,836     |    |         |   | 1,092,152 |   |
| Other assets                                                                                                                                                                                                                                                                      |   |          | 1,600,250   |    |         |   | 67,253 |   |
| Deferred financing costs, net of amortization of $861,086 and $35,831 respectively                                                                                                                                                                                                |   |          | 2,781,741   |    |         |   | 1,012,756 |   |
| Total assets                                                                                                                                                                                                                                                                      |   | $             | 182,224,949 |    |         | $      | 66,584,051 |   |
|                                                                                                                                                                                                                                                                              |   |          |        |    |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                        |   |          |        |    |         |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                                                                                                              |   |          |        |    |         |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                                  |   | $             | 17,105,988  |    |         | $      | 4,852,221 |   |
| Accrued liabilities                                                                                                                                                                                                                                                               |   |          | 4,269,193   |    |         |   | 885,622 |   |
| Revenue payable                                                                                                                                                                                                                                                                   |   |          | 2,408,129   |    |         |   | 342,585 |   |
| Dividend payable                                                                                                                                                                                                                                                                  |   |          | -           |    |         |   | 25,654 |   |
| Current portion of notes payable                                                                                                                                                                                                                                                  |   |          | 568,562     |    |         |   | 44,157 |   |
| Derivative liability                                                                                                                                                                                                                                                              |   |          | -           |    |         |   | 69,136 |   |
| Total current liabilities                                                                                                                                                                                                                                                         |   |          | 24,351,872  |    |         |   | 6,219,375 |   |
|                                                                                                                                                                                                                                                                              |   |          |        |    |         |   |   |   |
| Payable on sale of partnership                                                                                                                                                                                                                                                    |   |          | 640,695     |    |         |   | 640,695 |   |
| Notes payable, less current portion                                                                                                                                                                                                                                               |   |          | 52,689,323  |    |         |   | 13,000,000 |   |
| Asset retirement obligation                                                                                                                                                                                                                                                       |   |          | 4,634,858   |    |         |   | 2,032,306 |   |
| Total liabilities                                                                                                                                                                                                                                                                 |   |          | 82,316,748  |    |         |   | 21,892,376 |   |
|                                                                                                                                                                                                                                                                              |   |          |        |    |         |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                                                                     |   |          |        |    |         |   |   |   |
|                                                                                                                                                                                                                                                                              |   |          |        |    |         |   |   |   |
| REDEEMABLE PREFERRED STOCK:                                                                                                                                                                                                                                                       |   |          |        |    |         |   |   |   |
| Series C Cumulative Perpetual Preferred Stock, cumulative dividend rate 10.25% per annum, 4,000,000 authorized, 1,153,741 and 214,950 issued & outstanding as of September 30, 2010 and December 31, 2009, respectively, with liquidation preference of $25.00 per share |   |          | 28,843,525  |    |         |   | 5,373,750 |   |
| SHAREHOLDERS’ EQUITY:                                                                                                                                                                                                                                                       |   |          |        |    |         |   |   |   |
| Preferred stock, 6,000,000 shares authorized, none issued and outstanding                                                                                                                                                                                                         |   |          | -           |    |         |   | - |   |
| Common stock, $0.01 par value; 100,000,000 shares authorized, 68,885,661 and 50,591,610 shares                                                                                                                                                                                    |   |          |        |    |         |   |   |   |
| issued and outstanding as of September 30, 2010 and December 31, 2009, respectively                                                                                                                                                                                               |   |          | 688,857     |    |         |   | 505,916 |   |
| Additional paid in capital                                                                                                                                                                                                                                                        |   |          | 118,317,477 |    |         |   | 71,936,306 |   |
| Accumulated deficit                                                                                                                                                                                                                                                               |   |          | (47,501,911 | )       |         |   | (33,135,693 | ) |
| Treasury Stock, previously deposit on Triad, at cost, 761,652 shares                                                                                                                                                                                                              |   |          | (1,310,357  | )  |         |   | (1,310,357 | ) |
| Unearned common stock in KSOP, at cost, 137,900 shares                                                                                                                                                                                                                            |   |          | (542,366    | )       |         |   | - |   |
| Total Magnum Hunter Resources Corporation shareholders' equity                                                                                                                                                                                                               |   |          | 69,651,700  |    |         |   | 37,996,172 |   |
| Non-controlling interest                                                                                                                                                                                                                                                          |   |          | 1,412,976   |    |         |   | 1,321,753 |   |
| Total Equity                                                                                                                                                                                                                                                                      |   |          | 71,064,676  |    |         |   | 39,317,925 |   |
| Total liabilities and shareholders' equity                                                                                                                                                                                                                                        |   | $             | 182,224,949 |    |         | $      | 66,584,051 |   |

----

|                                                             |   | Three Months Ended |       |   | Nine Months Ended |   |
|------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                             |   | September 30,      |       |   | September 30,     |   |
|                                                             |   | 2010               |       |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| REVENUE:                                                         |   |               |       |   |              |   |   |   |   |   |   |   |
| Oil and gas sales                                                |   | $                  | 8,281,723  |   |              | $      | 2,320,514 |   |   | $ | 23,920,482 |   |   | $ | 6,566,441 |   |
| Field operations and other                                       |   |               | 1,341,715  |   |              |   | - |   |   |   | 3,330,013 |   |   |   | 200,000 |   |
| Total revenue                                                    |   |               | 9,623,438  |   |              |   | 2,320,514 |   |   |   | 27,250,495 |   |   |   | 6,766,441 |   |
|                                                             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES:                                                        |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Lease operating expenses                                         |   |               | 2,897,910  |   |              |   | 1,288,850 |   |   |   | 8,153,941 |   |   |   | 3,806,617 |   |
| Severance taxes and marketing                                    |   |               | 820,511    |   |              |   | - |   |   |   | 2,167,359 |   |   |   | - |   |
| Exploration                                                      |   |               | 250,534    |   |              |   | 278,689 |   |   |   | 1,075,643 |   |   |   | 392,365 |   |
| Field operations                                                 |   |               | 1,300,192  |   |              |   | - |   |   |   | 3,143,255 |   |   |   | - |   |
| Impairment of oil & gas properties                           |   |               | 19,991     |   |              |   | - |   |   |   | 19,991 |   |   |   | - |   |
| Depreciation, depletion and accretion                            |   |               | 2,289,425  |   |              |   | 993,380 |   |   |   | 7,138,488 |   |   |   | 3,100,242 |   |
| General and administrative                                       |   |               | 4,633,767  |   |              |   | 2,329,401 |   |   |   | 17,903,244 |   |   |   | 4,521,076 |   |
| Total expenses                                                   |   |               | 12,212,330 |   |              |   | 4,890,320 |   |   |   | 39,601,921 |   |   |   | 11,820,300 |   |
|                                                             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                             |   |               | (2,588,892 | )      |              |   | (2,569,806 | ) |   |   | (12,351,426 | ) |   |   | (5,053,859 | ) |
|                                                             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME AND (EXPENSE):                                      |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                  |   |               | 50,351     |   |              |   | 72 |   |   |   | 54,578 |   |   |   | 924 |   |
| Interest expense                                                 |   |               | (1,096,545 | )      |              |   | (688,469 | ) |   |   | (3,016,429 | ) |   |   | (1,866,655 | ) |
| Gain (Loss) on derivative contracts                              |   |               | (61,552    | )      |              |   | 190,637 |   |   |   | 2,347,808 |   |   |   | (1,027,467 | ) |
|                                                             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                         |   |               | (3,696,638 | )      |              |   | (3,067,566 | ) |   |   | (12,965,469 | ) |   |   | (7,947,057 | ) |
|                                                             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
|  Net (income) loss attributable to non-controlling interest |   |               | (25,888    | )      |              |   | 15,344 |   |   |   | (91,223 | ) |   |   | 129,976 |   |
|                                                             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Magnum Hunter Resources Corporation     |   |               | (3,722,526 | )      |              |   | (3,052,222 | ) |   |   | (13,056,692 | ) |   |   | (7,817,081 | ) |
|                                                             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Dividend on Preferred Stock                                      |   |               | (601,131   | )      |              |   | - |   |   |   | (1,309,527 | ) |   |   | - |   |
|                                                             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to common shareholders                     |   | $                  | (4,323,657 | )      |              | $      | (3,052,222 | ) |   | $ | (14,366,219 | ) |   | $ | (7,817,081 | ) |
|                                                             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Loss per common share                                            |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                                |   | $                  | (0.06      | )      |              | $      | (0.08 | ) |   | $ | (0.23 | ) |   | $ | (0.21 | ) |
|                                                             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                                |   |               | 67,996,180 |   |              |   | 37,012,912 |   |   |   | 62,010,895 |   |   |   | 36,863,881 |   |

----

|                                                                                 |   |            |       |   |     |   |       |   |   |   |              |   |   |        |        |   |     |   |        |  Unearned        |   |   |            |   |   |   |     |
|--------------------------------------------------------------------------------------|--------|-----------------|------------|--------|----------|--------|------------|--------|--------|--------|-------------------|--------|--------|-------------|-------------|--------|----------|--------|-------------|-----------------------|--------|--------|-----------------|--------|--------|--------|----------|
|                                                                                 |   | Numberof Shares |       |   | Deposit  |   |       | Common |   |   | AdditionalPaid in |   |   | Accumulated |        |   | Treasury |   |        |  CommonShares in |   |   | Non-controlling |   |   | Total  |     |
|                                                                                 |   | of Common       |       |   | on Triad |   |       | Stock  |   |   | Capital           |   |   | Deficit     |        |   | Stock    |   |        |  KSOP            |   |   | 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            |   |   |        | 308,988     |   |     |   | -           |                  |   |   | -               |   |   |   | -        |   |   |   | - |   |   |   | 332,431 |   |
| Stock compensation                                                                   |   |            | -          |   |     |   | -          |   |   |   | -                 |   |   |        | 4,818,920   |   |     |   | -           |                  |   |   | -               |   |   |   | -        |   |   |   | - |   |   |   | 4,818,920 |   |
| 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                                            |   |            | -          |   |     |   | -          |   |   |   | -                 |   |   |        | (590,924    | )      |     |   | -           |                  |   |   | -               |   |   |   | -        |   |   |   | - |   |   |   | (590,924 | ) |
| 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                              |   |            | 6,353,854  |   |     |   | -          |   |   |   | 63,539            |   |   |        | 13,726,920  |   |     |   | -           |                  |   |   | -               |   |   |   | -        |   |   |   | - |   |   |   | 13,790,459 |   |
| Issued 7,500 shares of common stock upon stock option exercise                       |   |            | 7,500      |   |     |   | -          |   |   |   | 75                |   |   |        | 8,700       |   |     |   | -           |                  |   |   | -               |   |   |   | -        |   |   |   | - |   |   |   | 8,775 |   |
| Issed 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                                 |   |            | -          |   |     |   | -          |   |   |   | -                 |   |   |        | -           |   |     |   | (1,178,902  | )                     |   |   | -               |   |   |   | -        |   |   |   | - |   |   |   | (1,178,902 | ) |
| 761,652 shares of common stock as deposit on Triad Acquisition returned to treasury  |   |            | -          |   |     |   | 1,310,357  |   |   |   | -                 |   |   |        | -           |   |     |   | -           |                  |   |   | (1,310,357      | )      |   |   | -        |   |   |   | - |   |   |   | - |   |
| Loan of 137,900 shares to KSOP                                                       |   |            | -          |   |     |   | -          |   |   |   | -                 |   |   |        | -           |   |     |   | -           |                  |   |   | -               |   |   |   | (542,366 | ) |   |   | - |   |   |   | (542,366 | ) |
| Net loss                                                                             |   |            | -          |   |     |   | -          |   |   |   | -                 |   |   |        | -           |   |     |   | (13,056,691 | )                     |   |   | -               |   |   |   | -        |   |   |   | 91,223 |   |   |   | (12,965,468 | ) |
| BALANCE, September 30, 2010                                                          |   |            | 68,885,661 |   |     | $      | -          |   |   | $      | 688,857           |   |   | $           | 118,317,477 |   |     | $      | (47,501,911 | )                     |   | $      | (1,310,357      | )      |   | $      | (542,366 | ) |   | $ | 1,412,976 |   |   | $ | 71,064,676 |   |

----

|                                                                            |   | Nine Months Ended |        |
|---------------------------------------------------------------------------------|--------|-------------------|-------------|
|                                                                            |   | September 30,     |        |
|                                                                            |   | 2010              |        |   | 2009 |   |
|                                                                            |   |              |        |   |   |   |
| Cash flows from operating activities                                            |   |              |        |   |   |   |
| Net loss attributable to Magnum Hunter Resources Corporation                    |   | $                 | (13,056,691 | ) |   | $ | (7,817,081 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |   |              |        |   |   |   |   |   |
| Non-controlling Interest                                                        |   |              | 91,223      |   |   |   | (129,976 | ) |
| Depletion, depreciation, and accretion                                          |   |              | 7,138,488   |   |   |   | 3,100,242 |   |
| Amortization of deferred financing costs included in interest expense           |   |              | 861,086     |   |   |   | 310,136 |   |
| Dry hole cost                                                                   |   |              | -           |   |   |   | 282,056 |   |
| Share based compensation                                                        |   |              | 5,151,351   |   |   |   | 1,762,176 |   |
| Unrealized loss on derivative contracts                                         |   |              | 1,181,057   |   |   |   | 3,513,709 |   |
| Gain on sale of assets                                                          |   |              | (46,784     | ) |   |   | - |   |
| Asset impairment                                                                |   |              | 19,991      |   |   |   | - |   |
| Changes in operating assets and liabilities:                                    |   |              |        |   |   |   |   |   |
|    Accounts receivable                                           |   |              | 1,157,016   |   |   |   | (216,497 | ) |
|    Inventory                                                     |   |              | 69,624      |   |   |   | - |   |
|    Prepaid expenses                                              |   |              | (501,569    | ) |   |   | (76,509 | ) |
|    Accounts payable                                              |   |              | (1,574,837  | ) |   |   | 249,403 |   |
|    Revenue payable                                               |   |              | 137,606     |   |   |   | 212,911 |   |
|    Accrued liabilities                                           |   |              | 3,018,315   |   |   |   | 62,746 |   |
| Net cash provided by operating activities                                       |   |              | 3,645,876   |   |   |   | 1,253,316 |   |
|                                                                            |   |              |        |   |   |   |   |   |
| Cash flows from investing activities                                            |   |              |        |   |   |   |   |   |
| Capital expenditures                                                            |   |              | (28,122,799 | ) |   |   | (10,753,268 | ) |
| Advances                                                                        |   |              | 1,432,613   |   |   |   | - |   |
| Cash received in purchase of Sharon Resources, Inc.                             |   |              | -           |   |   |   | 235,023 |   |
| Cash paid in acquisition of Triad, net of cash acquired of $3,710,000           |   |              | (59,500,299 | ) |   |   | - |   |
| Proceeds from sale of assets                                                    |   |              | 49,670      |   |   |   | - |   |
| Deposits                                                                        |   |              | (979,858    | ) |   |   | - |   |
| Net cash used in investing activities                                           |   |              | (87,120,673 | ) |   |   | (10,518,245 | ) |
|                                                                            |   |              |        |   |   |   |   |   |
| 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        |   |              | 22,878,851  |   |   |   | - |   |
| Proceeds from exercise of warrants                                              |   |              | 13,790,459  |   |   |   | - |   |
| Cash paid upon conversion of Series B Preferred Stock                           |   |              | (11,250,000 | ) |   |   | - |   |
| Purchase of Company shares and loan to KSOP                                     |   |              | (542,366    | ) |   |   | - |   |
| Options exercised                                                               |   |              | 8,775       |   |   |   | - |   |
| Options surrendered for cash                                                    |   |              | (115,500    | ) |   |   | - |   |
| Preferred stock dividend paid                                                   |   |              | (1,335,181  | ) |   |   | - |   |
| Proceeds from revolving credit borrowings                                       |   |              | 72,000,000  |   |   |   | 5,500,000 |   |
| Principal payment on revolving credit                                           |   |              | (35,000,000 | ) |   |   | - |   |
| Proceeds from loan                                                              |   |              | 580,459     |   |   |   | 217,336 |   |
| Principal payment on loan                                                       |   |              | (778,547    | ) |   |   | (127,122 | ) |
| Payment on payable on sale of partnership                                       |   |              | -           |   |   |   | (113,560 | ) |
| Payment of deferred financing costs                                             |   |              | (2,630,071  | ) |   |   | - |   |
| Net cash provided by financing activities                                       |   |              | 82,029,830  |   |   |   | 5,476,654 |   |
|                                                                            |   |              |        |   |   |   |   |   |
| Net change in cash and cash equivalents                                    |   |              | (1,444,967  | ) |   |   | (3,788,275 | ) |
| Cash and cash equivalents, beginning of period                                  |   |              | 2,281,568   |   |   |   | 6,120,402 |   |
|                                                                            |   |              |        |   |   |   |   |   |
| Cash and cash equivalents, end of period                                        |   | $                 | 836,601     |   |   | $ | 2,332,127 |   |
|                                                                            |   |              |        |   |   |   |   |   |
| Supplemental disclosure of cash flow information                                |   |              |        |   |   |   |   |   |
| Cash paid for interest                                                          |   | $                 | 1,966,005   |   |   | $ | 1,556,519 |   |

----

| Non-cash transactions                                                   |   |   |       |   |   |   |      |   |
|-------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|
| Accrued capital expenditures                                            |   | $      | 10,253,061 |   |   | $      | -         |   |
| Stock issued for acquisition of Sharon Resources, Inc.                  |   | $      | -          |   |   | $      | 2,684,535 |   |
| Series B Preferred stock issued for acquisition of Triad                |   | $      | 14,982,000 |   |   | $      | -         |   |
| Debt assumed in acquisition of Triad                                    |   | $      | 3,411,816  |   |   | $      | -         |   |
| Common stock issued for payment of services                             |   | $      | 165,000    |   |   |   | -         |   |
| Common stock issued in conversion of Series C Perpetual 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 |    |
|----------------------------------------------|---------|
| September 30, 2010                           |    |
|                                         | Level 1 |   | Level 2 |   | Level 3 |   |
| Commodity derivatives                        |    | $ | - |   |   | $ | 1,103,493 |   |   | $ | - |   |
|                                         |    |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets at fair value                   |    | $ | - |   |   | $ | 1,103,493 |   |   | $ | - |   |
|                                         |    |   |   |   |   |   |   |   |   |   |   |   |
| 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                                                          |   | $      | 4,060,493   |   |
| Proved oil and gas properties                                            |   |   | 49,708,193  |   |
| Unproved oil and gas properties                                     |   |   | 21,400,832  |   |
| Gas gathering systems                                                    |   |   | 1,120,000   |   |
|  Field servicing equipment                                          |   |   | 7,576,000   |   |
| Asset retirement obligation                                              |   |   | ( 2,260,792 | ) |
| Total                                                                    |   | $      | 81,604,726  |   |
|                                                                     |   |   |        |   |
| Working capital acquired was as follows:                                 |   |   |        |   |
| Cash                                                                     |   | $      | 3,710,610   |   |
| Accounts receivable                                                      |   |   | 2,404,514   |   |
| 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                                           |   | $      | 4,060,493   |   |

----

|                                                               |   | (in thousands)                        |   |
|--------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                               |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|                                                               |   | 2009                                  |   |   | 2010 |   |   | 2009 |   |
|  Total operating revenue                                      |   | $                                     | 8,491  |   |   | $ | 29,388 |   |   | $ | 24,494 |   |
|  Total operating costs and expenses                           |   | $                                     | 11,529 |   |   | $ | 41,690 |   |   | $ | 28,484 |   |
|  Operating income (loss)                                      |   | $                                     | (3,038 | ) |   | $ | (12,302 | ) |   | $ | (3,990 | ) |
|  Interest expense and other                                   |   | $                                     | (630   | ) |   | $ | (1,569 | ) |   | $ | (5,698 | ) |
|  Net loss attributable to Magnum Hunter Resources Corporation |   | $                                     | (3,668 | ) |   | $ | (13,871 | ) |   | $ | (9,688 | ) |
|  Dividends on preferred stock                                 |   | $                                     | (278   | ) |   | $ | (1,507 | ) |   | $ | (835 | ) |
|  Net loss attributable to common stockholders                 |   | $                                     | (3,946 | ) |   | $ | (15,378 | ) |   | $ | (10,523 | ) |
|  Loss per common share, basic and diluted                     |   | $                                     | (0.08  | ) |   | $ | (0.25 | ) |   | $ | (0.21 | ) |

----

| Commodity   | Type        | Volume/Month | Duration         |   | Price          |   |   | Fair Market Value |      |
|-------------|-------------|--------------|------------------|--------|----------------|--------|--------|-------------------|-----------|
| Oil         | Swap        | 670 Bbls     | June 10 - Dec 10 |   | $81.65         |   |   | $                 | 916       |   |
| Oil         | Swap        | 435 Bbls     | Jan 11 - Dec 11  |   | $85.25         |   |   | $                 | 2,226     |   |
| Oil         | Swap        | 2,500 Bbls   | June 10 - Dec 10 |   | $83.10         |   |   | $                 | 14,285    |   |
| Oil         | Swap        | 2,250 Bbls   | Jan 11 - Dec 11  |   | $85.00         |   |   | $                 | 1,808     |   |
| Oil         | Collar      | 4,178 Bbls   | Jan 12 - Dec 12  |   | 80.00 - 100.00 |   |   | $                 | 92,164    |   |
| Oil         | Collar      | 5,000 Bbls   | June 10 - Dec 11 |   | 70.00 - 82.25  |   |   | $                 | (396,311  | ) |
| Oil         | Buy - CALL  | 4,562 Bbls   | Jan 11 - Dec 11  |   | 82.25          |   |   | $                 | 569,947   |   |
| Oil         | Buy - CALL  | 5,000 Bbls   | July 10 - Dec 10 |   | 82.25          |   |   | $                 | 38,738    |   |
| Oil         | Buy - PUT   | 3,720 Bbls   | June 10 - Dec 10 |   | 75             |   |   | $                 | (16,073   | ) |
| Oil         | Buy - PUT   | 4,800 Bbls   | Jan 11 - Dec 11  |   | 80             |   |   | $                 | (176,682  | ) |
| Oil         | Buy - PUT   | 4,600 Bbls   | Jan 12 - Dec 12  |   | $80.00         |   |   | $                 | (101,848  | ) |
| Oil         | Buy - PUT   | 3,567 Bbls   | June 10 - Dec 10 |   | $80.00         |   |   | $                 | (18,778   | ) |
| Oil         | Buy - PUT   | 6,133 Bbls   | Oct 10 - Dec 10  |   | $70.00         |   |   | $                 | 8,729     |   |
| Oil         | Buy - PUT   | 1,400 Bbls   | Jan 11 - Dec 11  |   | $75.00         |   |   | $                 | 85,304    |   |
| Oil         | Buy - PUT   | 3,042 Bbls   | Jan 11 - Dec 11  |   | $75.00         |   |   | $                 | 185,705   |   |
| Oil         | Buy - PUT   | 1,525 Bbls   | Jan 12 - Dec 12  |   | $75.00         |   |   | $                 | 146,220   |   |
| Oil         | Sell - CALL | 4,562 Bbls   | Jan 11 - Dec 11  |   | $90.00         |   |   | $                 | (364,888  | ) |
| Oil         | Sell - CALL | 5,000 Bbls   | July 10 - Dec 10 |   | $90.00         |   |   | $                 | (9,644    | ) |
| Oil         | Sell - CALL | 6,133 Bbls   | Oct 10 - Dec 10  |   | $90.00         |   |   | $                 | (11,863   | ) |
| Oil         | Sell - CALL | 1,400 Bbls   | Jan 11 - Dec 11  |   | $95.00         |   |   | $                 | (82,020   | ) |
| Oil         | Sell - CALL | 3,042 Bbls   | Jan 11 - Dec 11  |   | $97.20         |   |   | $                 | (155,948  | ) |
| Oil         | Sell - CALL | 1,525 Bbls   | Jan 12 - Dec 12  |   | $108.00        |   |   | $                 | (107,843  | ) |
| Oil         | Sell - PUT  | 4,562 Bbls   | Jan 11 - Dec 11  |   | $52.00         |   |   | $                 | (42,122   | ) |
| Oil         | Sell - PUT  | 5,000 Bbls   | July 10 - Dec 10 |   | $55.50         |   |   | $                 | (250      | ) |
| Oil         | Sell - PUT  | 1,400 Bbls   | Jan 11 - Dec 11  |   | $60.00         |   |   | $                 | (28,113   | ) |
| Oil         | Sell - PUT  | 3,042 Bbls   | Jan 11 - Dec 11  |   | $60.00         |   |   | $                 | (61,299   | ) |
| Oil         | Sell - PUT  | 1,525 Bbls   | Jan 12 - Dec 12  |   | $55.00         |   |   | $                 | (48,658   | ) |
| Natural Gas | Swap        | 27,350 Mmbtu | June 10 - Dec 10 |   | 5.74           |   |   | $                 | 95,263    |   |
| Natural Gas | Swap        | 3,400 Mmbtu  | Jan 11 - Dec 11  |   | $5.98          |   |   | $                 | 62,516    |   |
| Natural Gas | Swap        | 3,000 Mmbtu  | Jan 12 - Dec 12  |   | 6.15           |   |   | $                 | 38,357    |   |
| Natural Gas | Swap        | 13,521 Mmbtu | Jun 10 - Nov 10  |   | 5.03           |   |   | $                 | 27,789    |   |
| Natural Gas | Collar      | 12,500 Mmbtu | Jan 11 - Dec 11  |   | 5.00 - 8.20    |   |   | $                 | 126,187   |   |
| Natural Gas | Collar      | 4,165 Mmbtu  | Jan 11 - Dec 11  |   | 5.00 - 8.95    |   |   | $                 | 42,524    |   |
| Natural Gas | Collar      | 10,000 Mmbtu | Jan 12 - Dec 12  |   | 5.00 - 9.82    |   |   | $                 | 70,532    |   |
| Natural Gas | Collar      | 5,000 Mmbtu  | June 10 - Dec 10 |   | 5.50 - 7.75    |   |   | $                 | 15,084    |   |
| Natural Gas | Collar      | 15,000 Mmbtu | June 10 - Dec 10 |   | 5.75 - 7.10    |   |   | $                 | 52,664    |   |
| Natural Gas | Collar      | 27,350 Mmbtu | June 10 - Dec 10 |   | 5.00 - 6.70    |   |   | $                 | 55,913    |   |
| Natural Gas | Collar      | 47,600 Mmbtu | Jan 11 - Dec 11  |   | 5.50 - 7.10    |   |   | $                 | 685,432   |   |
| Natural Gas | Collar      | 47,300 Mmbtu | Jan 12 - Dec 12  |   | 5.00 - 8.40    |   |   | $                 | 307,530   |   |
| Natural Gas | Buy - PUT   | 15,000 Mmbtu | June 10 - Dec 10 |   | $5.00          |   |   | $                 | 30,686    |   |
| Natural Gas | Buy - PUT   | 5,000 Mmbtu  | June 10 - Dec 10 |   | $5.00          |   |   | $                 | 10,229    |   |
| Natural Gas | Sell - PUT  | 5,000 Mmbtu  | June 10 - Dec 10 |   | $5.00          |   |   | $                 | (10,229   | ) |
| Natural Gas | Sell - PUT  | 15,000 Mmbtu | June 10 - Dec 10 |   | $5.00          |   |   | $                 | (30,686   | ) |
|        |        |         |             |   |           |   |   | $                 | 1,103,493 |   |

----

|                                               |   | September 30, 2010 |      |
|----------------------------------------------------|--------|--------------------|-----------|
| Asset retirement obligation at beginning of period |   | $                  | 2,032,306 |   |
| Assumed in Triad acquisition                       |   |               | 2,260,792 |   |
| Liabilities incurred                               |   |               | 42,709    |   |
| Liabilities settled                                |   |               | -         |   |
| Accretion expense                                  |   |               | 299,051   |   |
| Revisions in estimated liabilities                 |   |               | -         |   |
| Asset retirement obligation at end of period       |   | $                  | 4,634,858 |   |

|                                                                                                              |   | September 30, 2010 |       |
|-------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|
| Various equipment notes payable with maturity dates August 2010 to February 2015, interest rates of 0.00% - 9.24% |   | $                  | 3,257,885  |   |
| Senior revolving credit facility due November 23, 2012, 4.5% at September 30, 2010                                |   |               | 50,000,000 |   |
|                                                                                                              |   | $                  | 53,257,885 |   |
| Less: current portion                                                                                             |   |               | (568,562   | ) |
| Total Long-Term Debt                                                                                              |   | $                  | 52,689,323 |   |

| 2010       |   | $      | 195,076    |   |
|------------|--------|--------|------------|--------|
| 2011       |   |   | 589,247    |   |
| 2012       |   |   | 50,583,393 |   |
| 2013       |   |   | 575,615    |   |
| Thereafter |   |   | 1,314,554  |   |
| Total      |   | $      | 53,257,885 |   |

----

|                               |   |   |      |   | Weighted-      |   |
|------------------------------------|--------|--------|-----------|--------|----------------|--------|
|                               |   |   |      |   | Average        |   |
|                               |   | Shares |      |   | Exercise Price |   |
| Outstanding at beginning of period |   |   | 7,117,000 |   |           | $      | 0.93 |   |
| Granted                            |   |   | 2,683,500 |   |           | $      | 3.05 |   |
| Exercised                          |   |   | (7,500    | )      |           | $      | 1.17 |   |
| Forfeited or expired               |   |   | (147,500  | )      |           | $      | 1.64 |   |
| Outstanding at end of period       |   |   | 9,645,500 |   |           | $      | 1.51 |   |
| Exercisable at September 30, 2010  |   |   | 7,269,625 |   |           | $      | 1.22 |   |

| Non-vested Options                |   | Shares |       |
|-----------------------------------|--------|--------|------------|
| Non-vested at beginning of period |   |   | 2,340,250  |   |
| Granted                           |   |   | 2,683,500  |   |
| Vested                            |   |   | (2,542,875 | ) |
| Forfeited                         |   |   | (22,500    | ) |
| Non-vested at September 30, 2010  |   |   | 2,458,375  |   |

----

|                                                            |   | Nine months Ended  |
|-----------------------------------------------------------------|--------|--------------------|
|                                                            |   | September 30, 2010 |
| Weighted average value per option granted during the period (2) |   | 2.29               |
| Assumptions (1) (3) :                                           |   |               |
| Weighted average stock price volatility                         |   | 101.87             |
| Weighted average risk free rate of return                       |   | 2.13%              |
| 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                          |   |   | 53,854     |   |                             | $      | 3.08 |   |
| Vested                           |   |   | (2,258,854 | )      |                             | $      | 0.46 |   |
| Forfeited                        |   |   | -          |   |                             |   | - |   |
| Non-vested at September 30, 2010 |   |   | 105,000    |   |                             | $      | 1.34 |   |

----

----

|                                           |   | Nine Months Ended September |      |
|------------------------------------------------|--------|-----------------------------|-----------|
| Noncontrolling interest at beginning of period |   |                        | 1,321,753 |   |
| Income  to noncontrolling interest   |   |                        | 91,223    |   |
| Noncontrolling interest at end of period       |   |                        | 1,412,976 |   |

----

| As of September 30, 2010                                                 |   |
|--------------------------------------------------------------------------|--------|
|                                                                     |   | Magnum Hunter Resources Corporation |   | Guarantor Subsidiaries |   | Non Guarantor Subsidiaries |   | Eliminations |   |   | Magnum Hunter Resources Corporation Consolidated |   |
| ASSETS                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current assets                                                           |   | $ | 4,902,007 |   |   | $ | 3,838,387 |   |   | $ | 1,105,431 |   |   | $ | - |   |   | $ | 9,845,825 |   |
| Intercompany accounts receivable                                         |   |   | 54,256,163 |   |   |   | - |   |   |   | - |   |   |   | (54,256,163 | ) |   |   | - |   |
| Property and equipment (using successful efforts accounting)             |   |   | 26,779,466 |   |   |   | 95,781,940 |   |   |   | 44,905,891 |   |   |   | - |   |   |   | 167,467,297 |   |
| Investment in subsidiaries                                               |   |   | 80,877,446 |   |   |   | - |   |   |   | - |   |   |   | (80,877,446 | ) |   |   | - |   |
| Other assets                                                             |   |   | 3,356,780 |   |   |   | 448,323 |   |   |   | 1,106,724 |   |   |   | - |   |   |   | 4,911,827 |   |
|      Total Assets                               |   | $ | 170,171,862 |   |   | $ | 100,068,650 |   |   | $ | 47,118,046 |   |   | $ | (135,133,609 | ) |   | $ | 182,224,949 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities                                                      |   | $ | 9,209,335 |   |   | $ | 10,417,887 |   |   | $ | 5,365,345 |   |   | $ | - |   |   | $ | 24,992,567 |   |
| Intercompany accounts payable                                            |   |   | - |   |   |   | 3,954,895 |   |   |   | 50,301,268 |   |   |   | (54,256,163 | ) |   |   | - |   |
| Long-term liabilities                                                    |   |   | 50,286,082 |   |   |   | 3,114,659 |   |   |   | 3,923,440 |   |   |   | - |   |   |   | 57,324,181 |   |
| Redeemable preferred stock                                               |   |   | 28,843,525 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 28,843,525 |   |
| Shareholders' equity                                                     |   |   | 81,832,920 |   |   |   | 82,581,209 |   |   |   | (12,472,007 | ) |   |   | (80,877,446 | ) |   |   | 71,064,676 |   |
|      Total Liabilities and Stockholders' Equity |   | $ | 170,171,862 |   |   | $ | 100,068,650 |   |   | $ | 47,118,046 |   |   | $ | (135,133,609 | ) |   | $ | 182,224,949 |   |

| As of December 31, 2009                                                  |   |
|--------------------------------------------------------------------------|--------|
|                                                                     |   | Magnum Hunter Resources Corporation |   | Guarantor Subsidiaries |   | Non Guarantor Subsidiaries |   | Eliminations |   |   | Magnum Hunter Resources Corporation Consolidated |   |
| ASSETS                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current assets                                                           |   | $ | 4,755,262 |   |   | $ | 1,268,689 |   |   | $ | 849,307 |   |   | $ | - |   |   | $ | 6,873,258 |   |
| Intercompany accounts receivable                                         |   |   | 48,398,232 |   |   |   | - |   |   |   | - |   |   |   | (48,398,232 | ) |   |   | - |   |
| Property and equipment (using successful efforts accounting)             |   |   | 18,055,962 |   |   |   | 3,403,599 |   |   |   | 36,079,071 |   |   |   | - |   |   |   | 57,538,632 |   |
| Investment in subsidiaries                                               |   |   | 2,684,536 |   |   |   | - |   |   |   | - |   |   |   | (2,684,536 | ) |   |   | - |   |
| Other assets                                                             |   |   | 2,146,411 |   |   |   | 25,750 |   |   |   | - |   |   |   | - |   |   |   | 2,172,161 |   |
|      Total Assets                               |   | $ | 76,040,403 |   |   | $ | 4,698,038 |   |   | $ | 36,928,378 |   |   | $ | (51,082,768 | ) |   | $ | 66,584,051 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities                                                      |   | $ | 4,222,587 |   |   | $ | 1,507,593 |   |   | $ | 489,195 |   |   | $ | - |   |   | $ | 6,219,375 |   |
| Intercompany accounts payable                                            |   |   | - |   |   |   | 423,347 |   |   |   | 47,974,885 |   |   |   | (48,398,232 | ) |   |   | - |   |
| Long-term liabilities                                                    |   |   | 13,874,238 |   |   |   | 131,099 |   |   |   | 1,667,664 |   |   |   | - |   |   |   | 15,673,001 |   |
| Redeemable preferred stock                                               |   |   | 5,373,750 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,373,750 |   |
| Shareholders' equity                                                     |   |   | 52,569,828 |   |   |   | 2,635,999 |   |   |   | (13,203,366 | ) |   |   | (2,684,536 | ) |   |   | 39,317,925 |   |
|      Total Liabilities and Stockholders' Equity |   | $ | 76,040,403 |   |   | $ | 4,698,038 |   |   | $ | 36,928,378 |   |   | $ | (51,082,768 | ) |   | $ | 66,584,051 |   |

----

| For the Three Months Ended September 30, 2010                     |   |
|-------------------------------------------------------------------|--------|
|                                                              |   | Magnum Hunter Resources Corporation |   |   | Guarantor Subsidiaries |   |   | Non Guarantor Subsidiaries |   |   | Eliminations |   |   | Magnum Hunter Resources Corporation Consolidated |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                          |   | $ | 1,987,732 |   |   | $ | 5,388,613 |   |   | $ | 2,707,090 |   |   | $ | (459,997 | ) |   | $ | 9,623,438 |   |
| Expenses                                                          |   |   | 6,301,996 |   |   |   | 4,750,704 |   |   |   | 2,727,372 |   |   |   | (459,997 | ) |   |   | 13,320,075 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before equity in net losses of subsidiary                    |   |   | (4,314,264 | ) |   |   | 637,909 |   |   |   | (20,282 | ) |   |   | - |   |   |   | (3,696,637 | ) |
|    Equity in net loss of subsidiary                |   |   | 591,739 |   |   |   | - |   |   |   | - |   |   |   | (591,739 | ) |   |   | - |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                          |   |   | (3,722,525 | ) |   |   | 637,909 |   |   |   | (20,282 | ) |   |   | (591,739 | ) |   |   | (3,696,637 | ) |
| Less:  Net loss attributable to non-conrolling interest |   |   | - |   |   |   | - |   |   |   | (25,888 | ) |   |   | - |   |   |   | (25,888 | ) |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Magnum Hunter Resources Corporation      |   |   | (3,722,525 | ) |   |   | 637,909 |   |   |   | (46,170 | ) |   |   | (591,739 | ) |   |   | (3,722,525 | ) |
| Dividends on preferred stock                                      |   |   | 601,131 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 601,131 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to common shareholders                      |   | $ | (4,323,656 | ) |   | $ | 637,909 |   |   | $ | (46,170 | ) |   | $ | (591,739 | ) |   | $ | (4,323,656 | ) |

| For the Three Months Ended September 30, 2009                     |   |
|-------------------------------------------------------------------|--------|
|                                                              |   | Magnum Hunter Resources Corporation |   |   | Guarantor Subsidiaries |   |   | Non Guarantor Subsidiaries |   |   | Eliminations |   |   | Magnum Hunter Resources Corporation Consolidated |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                          |   | $ | 865,597 |   |   | $ | - |   |   | $ | 1,463,021 |   |   | $ | (8,104 | ) |   | $ | 2,320,514 |   |
| Expenses                                                          |   |   | 3,810,412 |   |   |   | - |   |   |   | 1,585,772 |   |   |   | (8,104 | ) |   |   | 5,388,080 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before equity in net losses of subsidiary                    |   |   | (2,944,815 | ) |   |   | - |   |   |   | (122,751 | ) |   |   | - |   |   |   | (3,067,566 | ) |
|    Equity in net loss of subsidiary                |   |   | (107,407 | ) |   |   | - |   |   |   | - |   |   |   | 107,407 |   |   |   | - |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                          |   |   | (3,052,222 | ) |   |   | - |   |   |   | (122,751 | ) |   |   | 107,407 |   |   |   | (3,067,566 | ) |
| Less:  Net loss attributable to non-conrolling interest |   |   | - |   |   |   | - |   |   |   | 15,344 |   |   |   | - |   |   |   | 15,344 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Magnum Hunter Resources Corporation      |   |   | (3,052,222 | ) |   |   | - |   |   |   | (107,407 | ) |   |   | 107,407 |   |   |   | (3,052,222 | ) |
| Dividends on preferred stock                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to common shareholders                      |   | $ | (3,052,222 | ) |   | $ | - |   |   | $ | (107,407 | ) |   | $ | 107,407 |   |   | $ | (3,052,222 | ) |

| For the Nine Months Ended September 30, 2010                          |   |
|-----------------------------------------------------------------------|--------|
|                                                                  |   | Magnum Hunter Resources Corporation |   |   | Guarantor Subsidiaries |   |   | Non Guarantor Subsidiaries |   |   | Eliminations |   |   | Magnum Hunter Resources Corporation Consolidated |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                              |   | $ | 5,281,777 |   |   | $ | 15,172,591 |   |   | $ | 8,486,606 |   |   | $ | (1,690,479 | ) |   | $ | 27,250,495 |   |
| Expenses                                                              |   |   | 20,730,905 |   |   |   | 12,885,181 |   |   |   | 8,290,357 |   |   |   | (1,690,479 | ) |   |   | 40,215,964 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before equity in net income of subsidiary                        |   |   | (15,449,128 | ) |   |   | 2,287,410 |   |   |   | 196,249 |   |   |   | - |   |   |   | (12,965,469 | ) |
|    Equity in net income of subsidiary                  |   |   | 2,392,436 |   |   |   | - |   |   |   | - |   |   |   | (2,392,436 | ) |   |   | - |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                     |   |   | (13,056,692 | ) |   |   | 2,287,410 |   |   |   | 196,249 |   |   |   | (2,392,436 | ) |   |   | (12,965,469 | ) |
| Less:  Net income attributable to non-conrolling interest   |   |   | - |   |   |   | - |   |   |   | (91,223 | ) |   |   | - |   |   |   | (91,223 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) attributable to Magnum Hunter Resources Corporation |   |   | (13,056,692 | ) |   |   | 2,287,410 |   |   |   | 105,026 |   |   |   | (2,392,436 | ) |   |   | (13,056,692 | ) |
| Dividends on preferred stock                                          |   |   | 1,309,527 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,309,527 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) attributable to common shareholders                 |   | $ | (14,366,219 | ) |   | $ | 2,287,410 |   |   | $ | 105,026 |   |   | $ | (2,392,436 | ) |   | $ | (14,366,219 | ) |

----

| For the Nine Months Ended September 30, 2009                      |   |
|-------------------------------------------------------------------|--------|
|                                                              |   | Magnum Hunter Resources Corporation |   |   | Guarantor Subsidiaries |   |   | Non Guarantor Subsidiaries |   |   | Eliminations |   |   | Magnum Hunter Resources Corporation Consolidated |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                          |   | $ | 3,040,237 |   |   | $ | - |   |   | $ | 3,734,308 |   |   | $ | (8,104 | ) |   | $ | 6,766,441 |   |
| Expenses                                                          |   |   | 9,947,484 |   |   |   | - |   |   |   | 4,774,118 |   |   |   | (8,104 | ) |   |   | 14,713,498 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before equity in net losses of subsidiary                    |   |   | (6,907,247 | ) |   |   | - |   |   |   | (1,039,810 | ) |   |   | - |   |   |   | (7,947,057 | ) |
|    Equity in net loss of subsidiary                |   |   | (909,834 | ) |   |   | - |   |   |   | - |   |   |   | 909,834 |   |   |   | - |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                          |   |   | (7,817,081 | ) |   |   | - |   |   |   | (1,039,810 | ) |   |   | 909,834 |   |   |   | (7,947,057 | ) |
| Less:  Net loss attributable to non-conrolling interest |   |   | - |   |   |   | - |   |   |   | 129,976 |   |   |   | - |   |   |   | 129,976 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Magnum Hunter Resources Corporation      |   |   | (7,817,081 | ) |   |   | - |   |   |   | (909,834 | ) |   |   | 909,834 |   |   |   | (7,817,081 | ) |
| Dividends on preferred stock                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to common shareholders                      |   | $ | (7,817,081 | ) |   | $ | - |   |   | $ | (909,834 | ) |   | $ | 909,834 |   |   | $ | (7,817,081 | ) |

| For the Nine Months Ended September 30, 2010 |   |
|----------------------------------------------|--------|
|                                         |   | Magnum Hunter Resources Corporation |   |   | Guarantor Subsidiaries |   |   | Non Guarantor Subsidiaries |   |   | Eliminations |   |   | Magnum Hunter Resources Corporation Consolidated |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flow from operating activities          |   | $ | (9,462,774 | ) |   | $ | 11,247,113 |   |   | $ | 1,861,537 |   |   | $ | - |   |   | $ | 3,645,876 |   |
| Cash flow from investing activities          |   |   | (69,576,136 | ) |   |   | (15,594,305 | ) |   |   | (1,950,232 | ) |   |   | - |   |   |   | (87,120,673 | ) |
| Cash flow from financing activities          |   |   | 82,183,760 |   |   |   | (64,389 | ) |   |   | (89,541 | ) |   |   | - |   |   |   | 82,029,830 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash              |   |   | 3,144,850 |   |   |   | (4,411,581 | ) |   |   | (178,236 | ) |   |   | - |   |   |   | (1,444,967 | ) |
| Cash at beginning of period                  |   |   | (1,707,061 | ) |   |   | 3,726,562 |   |   |   | 262,067 |   |   |   | - |   |   |   | 2,281,568 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash at end of period                        |   | $ | 1,437,789 |   |   | $ | (685,019 | ) |   | $ | 83,831 |   |   | $ | - |   |   | $ | 836,601 |   |

----

| For the Nine Months Ended September 30, 2009 |   |
|----------------------------------------------|--------|
|                                         |   | Magnum Hunter Resources Corporation |   |   | Guarantor Subsidiaries |   |   | Non Guarantor Subsidiaries |   |   | Eliminations |   |   | Magnum Hunter Resources Corporation Consolidated |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flow from operating activities          |   | $ | 206,079 |   |   | $ | - |   |   | $ | 1,047,237 |   |   | $ | - |   |   | $ | 1,253,316 |   |
| Cash flow from investing activities          |   |   | (8,351,620 | ) |   |   | 235,023 |   |   |   | (2,401,648 | ) |   |   | - |   |   |   | (10,518,245 | ) |
| Cash flow from financing activities          |   |   | 5,476,654 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,476,654 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash              |   |   | (2,668,887 | ) |   |   | 235,023 |   |   |   | (1,354,411 | ) |   |   | - |   |   |   | (3,788,275 | ) |
| Cash at beginning of period                  |   |   | 4,655,521 |   |   |   | - |   |   |   | 1,464,881 |   |   |   | - |   |   |   | 6,120,402 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash at end of period                        |   | $ | 1,986,634 |   |   | $ | 235,023 |   |   | $ | 110,470 |   |   | $ | - |   |   | $ | 2,332,127 |   |

----

|                                                                                                         | Page   |
|--------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                         |   |
| PART I. FINANCIAL INFORMATION                                                                                | 22     |
|                                                                                                         |   |
| Item 1. Financial Statements (Unaudited):                                                               | 22     |
|                                                                                                         |   |
| Condensed Combined Balance Sheets as of September 30, 2010 and December 31, 2009                             | 22     |
|                                                                                                         |   |
| Condensed Combined Statements of Operations for the Nine Months Ended September 30, 2010 and 2009            | 23     |
|                                                                                                         |   |
| Condensed Combined Statements of Cash Flows for the  Nine Months Ended September 30, 2010 and 2009 | 24     |
|                                                                                                         |   |
| Notes to Condensed Combined Financial Statements                                                             | 25     |
|                                                                                                         |   |
| SIGNATURES                                                                                                   |   |

----

|                                                                    |   | September 30, |       |   | December 31, |   |
|-------------------------------------------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                                                    |   | 2010          |       |   | 2009         |   |
| ASSETS                                                                  |   |          |       |   |         |   |
| CURRENT ASSETS:                                                         |   |          |       |   |         |   |
| Cash and cash equivalents                                               |   | $             | -          |   |         | $      | 2,915,026 |   |
| Accounts receivable                                                     |   |          | 1,897,943  |   |         |   | 2,462,917 |   |
| Accounts receivable, intercompany                                       |   |          | 8,863,124  |   |         |   | 7,999,832 |   |
| Prepaids and other current assets                                       |   |          | 906,575    |   |         |   | 1,086,654 |   |
| Total current assets                                                    |   |          | 11,667,642 |   |         |   | 14,464,429 |   |
|                                                                    |   |          |       |   |         |   |   |   |
| PROPERTY AND EQUIPMENT (Net of Accumulated Depletion and Depreciation): |   |          |       |   |         |   |   |   |
| Oil and natural gas properties, successful efforts accounting           |   |          |       |   |         |   |   |   |
| Unproved                                                                |   |          | 24,539,692 |   |         |   | 2,433,630 |   |
| Proved properties                                                       |   |          | 47,795,689 |   |         |   | 69,266,226 |   |
| Equipment and other fixed assets                                        |   |          | 4,490,796  |   |         |   | 4,388,218 |   |
| Total property and equipment, net                                       |   |          | 76,826,177 |   |         |   | 76,088,074 |   |
|                                                                    |   |          |       |   |         |   |   |   |
| OTHERS ASSETS:                                                          |   |          |       |   |         |   |   |   |
| Other assets                                                            |   |          | 447,573    |   |         |   | 385,711 |   |
| Deferred financing costs, net                                           |   |          | -          |   |         |   | 394,081 |   |
| Total assets                                                            |   | $             | 88,941,392 |   |         | $      | 91,332,295 |   |
|                                                                    |   |          |       |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                              |   |          |       |   |         |   |   |   |
| CURRENT LIABILITIES:                                                    |   |          |       |   |         |   |   |   |
| Accounts payable                                                        |   | $             | 2,482,475  |   |         | $      | 1,513,518 |   |
| Accrued liabilities                                                     |   |          | 1,453,120  |   |         |   | 674,406 |   |
| Revenue payable                                                         |   |          | 2,070,266  |   |         |   | 1,782,494 |   |
| Current portion of notes payable                                        |   |          | 157,013    |   |         |   | - |   |
| Total current liabilities                                               |   |          | 6,162,874  |   |         |   | 3,970,418 |   |
|                                                                    |   |          |       |   |         |   |   |   |
| NONCURRENT LIABILITIES:                                                 |   |          |       |   |         |   |   |   |
| Liabilities subject to compromise                                       |   |          | -          |   |         |   | 77,664,336 |   |
| Notes payable, less current portion                                     |   |          | 553,063    |   |         |   | - |   |
| Asset retirement obligation                                             |   |          | 2,406,121  |   |         |   | 161,270 |   |
| Total liabilities                                                       |   |          | 9,122,058  |   |         |   | 81,796,024 |   |
|                                                                    |   |          |       |   |         |   |   |   |
| SHAREHOLDERS’ EQUITY:                                             |   |          |       |   |         |   |   |   |
| Common stock                                                            |   |          | -          |   |         |   | 9,150 |   |
| Treasury stock                                                          |   |          | -          |   |         |   | (5,300,000 | ) |
| Additional paid in capital                                              |   |          | -          |   |         |   | 241,700 |   |
| Contributed capital                                                     |   |          | 77,545,828 |   |         |   | - |   |
| Retained earnings                                                       |   |          | 2,273,506  |   |         |   | 14,420,729 |   |
| Total shareholders’ equity                                        |   |          | 79,819,334 |   |         |   | 9,371,579 |   |
| Non-controlling interest                                                |   |          | -          |   |         |   | 164,692 |   |
| Total shareholders’ equity                                        |   |          | 79,819,334 |   |         |   | 9,536,271 |   |
| Total liabilities and shareholders' equity                              |   | $             | 88,941,392 |   |         | $      | 91,332,295 |   |

----

|                                  |   | Nine Months Ended |       |
|---------------------------------------|--------|-------------------|------------|
|                                  |   | September 30,     |       |
|                                  |   | 2010              |       |   | 2009 |   |
| REVENUE:                              |   |              |       |   |   |   |
| Oil and gas sales                     |   | $                 | 13,849,951 |   |   | $ | 12,746,354 |   |
| Field operations and other            |   |              | 1,206,111  |   |   |   | 2,106,455 |   |
| Total revenue                         |   |              | 15,056,062 |   |   |   | 14,852,809 |   |
|                                  |   |              |       |   |   |   |   |   |
| EXPENSES:                             |   |              |       |   |   |   |   |   |
| Lease operating expenses              |   |              | 4,689,174  |   |   |   | 3,724,008 |   |
| Severance taxes and marketing         |   |              | 1,196,030  |   |   |   | 1,063,821 |   |
| Exploration                           |   |              | 526,280    |   |   |   | 392,532 |   |
| Field operations                      |   |              | 960,932    |   |   |   | 2,409,631 |   |
| Depreciation, depletion and accretion |   |              | 3,315,739  |   |   |   | 3,152,251 |   |
| General and administrative            |   |              | 1,627,232  |   |   |   | 2,416,154 |   |
| Total expenses                        |   |              | 12,315,387 |   |   |   | 13,158,397 |   |
|                                  |   |              |       |   |   |   |   |   |
| INCOME FROM OPERATIONS                |   |              | 2,740,675  |   |   |   | 1,694,412 |   |
|                                  |   |              |       |   |   |   |   |   |
| OTHER INCOME AND (EXPENSE):           |   |              |       |   |   |   |   |   |
| Interest income                       |   |              | 4,596      |   |   |   | 15,766 |   |
| Interest expense                      |   |              | (25,913    | ) |   |   | (1,575,018 | ) |
| Gain on derivative contracts          |   |              | -          |   |   |   | 599,577 |   |
|                                  |   |              |       |   |   |   |   |   |
| Income before reorganization items    |   |              | 2,719,358  |   |   |   | 734,737 |   |
|                                  |   |              |       |   |   |   |   |   |
| Bankruptcy fees                       |   |              | (333,881   | ) |   |   | (2,458,454 | ) |
|                                  |   |              |       |   |   |   |   |   |
| Net income (loss)                     |   | $                 | 2,385,477  |   |   | $ | (1,723,717 | ) |

----

|                                                                                     |   | 2010   |       |   | 2009   |   |
|------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Cash flows from operating activities                                                     |   |   |       |   |   |   |
| Net income (loss)                                                                        |   | $      | 2,385,477  |   |   | $      | (1,723,717 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |   |   |       |   |   |   |   |   |
| Depletion, depreciation, and accretion                                                   |   |   | 3,315,739  |   |   |   | 3,165,028 |   |
| Exploratory cost                                                                         |   |   |       |   |   |   | - |   |
| Amortization of deferred financing costs included in interest expense                    |   |   | 42,577     |   |   |   | 381,377 |   |
| Accretion expense                                                                        |   |   |       |   |   |   | - |   |
| (Gain) loss on sale of assets                                                            |   |   | (46,785    | )      |   |   | 20,657 |   |
| Changes in operating assets and liabilities:                                             |   |   |       |   |   |   |   |   |
| Accounts receivable                                                                      |   |   | (7,219,038 | )      |   |   | (321,826 | ) |
| Notes receivable                                                                         |   |   | -          |   |   |   | - |   |
| Inventory                                                                                |   |   | 71,540     |   |   |   | 189,499 |   |
| Prepaid expenses                                                                         |   |   | 108,539    |   |   |   | (57,025 | ) |
| Accounts payable                                                                         |   |   | 968,957    |   |   |   | 239,818 |   |
| Revenue payable                                                                          |   |   | 287,772    |   |   |   | (80,718 | ) |
| Accrued liabilities                                                                      |   |   | 778,714    |   |   |   | (338,446 | ) |
| Net cash provided by operating activities                                                |   |   | 693,492    |   |   |   | 1,474,647 |   |
|                                                                                     |   |   |       |   |   |   |   |   |
| Cash flows from investing activities                                                     |   |   |       |   |   |   |   |   |
| Capital expenditures                                                                     |   |   | (3,883,440 | )      |   |   | - |   |
| Change in deposits                                                                       |   |   | 289,642    |   |   |   | (34,308 | ) |
| Proceeds from sale of assets                                                             |   |   | 49,670     |   |   |   | 209,240 |   |
| Net cash used in investing activities                                                    |   |   | (3,544,128 | )      |   |   | 174,932 |   |
|                                                                                     |   |   |       |   |   |   |   |   |
| Cash flows from financing activities                                                     |   |   |       |   |   |   |   |   |
| Proceeds from loan                                                                       |   |   | 198,380    |   |   |   | 1,090,000 |   |
| Principal payment on loan                                                                |   |   | (262,770   | )      |   |   | (1,168,797 | ) |
| Net cash (used in) provided by financing activities                                      |   |   | (64,390    | )      |   |   | (78,797 | ) |
|                                                                                     |   |   |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                |   |   | (2,915,026 | )      |   |   | 1,570,782 |   |
| Cash and cash equivalents, beginning of period                                           |   |   | 2,915,026  |   |   |   | 197,795 |   |
|                                                                                     |   |   |       |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                 |   | $      | -          |   |   | $      | 1,768,577 |   |
|                                                                                     |   |   |       |   |   |   |   |   |
| Supplemental disclosure of cash flow information                                         |   |   |       |   |   |   |   |   |
| Cash paid for interest                                                                   |   | $      | 25,913     |   |   | $      | 3,078,518 |   |
| MHR capital contribution                                                                 |   | $      | 77,545,828 |   |   | $      | - |   |

----

----

| Total consideration paid for Triad Hunter LLC and Hunter Disposal LLC was $78,320,294. |   |
|----------------------------------------------------------------------------------------|--------|
|                                                                                   |   |
| Consideration was composed of the following.                                           |   |
| Contribution by Parent company                                                         |   | $ | 77,545,828 |   |
| Assumed debt                                                                           |   |   | 774,466 |   |
| Total consideration                                                                    |   | $ | 78,320,294 |   |
|                                                                                   |   |   |   |   |
| The consideration was allocated as follows:                                            |   |
|                                                                                   |   |   |   |   |
| Cash                                                                                   |   | $ | 3,581,586 |   |
| Accounts Receivable                                                                    |   |   | 3,872,395 |   |
| Inventory                                                                              |   |   | 684,656 |   |
| Other Current Assets                                                                   |   |   | 183,542 |   |
| Oil and Gas Properties                                                                 |   |   | 70,997,053 |   |
| Water Disposal System                                                                  |   |   | 988,000 |   |
| Machinery and Equipment                                                                |   |   | 3,022,844 |   |
| Other  Long-Term Assets                                                      |   |   | 549,826 |   |
| Liabilities Assumed                                                                    |   |   | (3,298,816 | ) |
| Asset Retirement Liability                                                             |   |   | (2,260,792 | ) |
| Total                                                                                  |   | $ | 78,320,294 |   |

|                                               |   | September 30, 2010 |      |
|----------------------------------------------------|--------|--------------------|-----------|
| Asset retirement obligation at beginning of period |   | $                  | 161,270   |   |
|                                               |   |               |      |   |
| Liabilities incurred                               |   |               | -         |   |
| Liabilities settled                                |   |               | -         |   |
| Accretion expense                                  |   |               | 146,851   |   |
| Revisions in estimated liabilities                 |   |               | 2,098,000 |   |
| Asset retirement obligation at end of period       |   | $                  | 2,406,121 |   |

----

|                                                                                                            |   | September 30, 2010 |     |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
| Various equipment notes payable with maturity dates August 2010 to August 2015, interest rates of 0.00% - 9.24% |   | $                  | 710,076  |   |
| Less: current portion                                                                                           |   |               | (157,013 | ) |
| Total Long-Term Debt                                                                                            |   | $                  | 553,063  |   |

| 2010       |   | $      | 94,581  |   |
|------------|--------|--------|---------|--------|
| 2011       |   |   | 171,235 |   |
| 2012       |   |   | 138,493 |   |
| 2013       |   |   | 102,098 |   |
| Thereafter |   |   | 203,669 |   |
| Total      |   | $      | 710,076 |   |

----

| 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. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | $38.6 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) $33.3 million through our ATM.                                                                                                                                                                                                                                             |
| ● | $13.8 million in gross proceeds from exercise of 241,500 of our $3.00 common stock warrants, 1,362,504 of our $2.50 common stock warrants and 4,829,850 of our $2.00 common stock warrants.                                                                                                                                                                                                                                                                                                 |

----

|                                                            |   | Three Months Ended |   |   | Nine Months Ended |   |
|-----------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                            |   | September 30,      |   |   | September 30,     |   |
|                                                            |   | 2010               |   |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Revenues (in thousands)                                         |   |               |   |   |              |   |   |   |   |   |   |   |
| Oil                                                             |   | $                  | 6,078  |   |              | $      | 1,804 |   |   | $ | 17,791 |   |   | $ | 4,821 |   |
| Gas                                                             |   |               | 1,713  |   |              |   | 232 |   |   |   | 4,790 |   |   |   | 952 |   |
| NGLs                                                            |   |               | 491    |   |              |   | 285 |   |   |   | 1,339 |   |   |   | 793 |   |
| Total oil and gas sales                                         |   |               | 8,282  |   |              |   | 2,321 |   |   |   | 23,920 |   |   |   | 6,566 |   |
| Field operations revenue                                        |   | $                  | 1,279  |   |              | $      | 6 |   |   | $ | 3,195 |   |   | $ | 8 |   |
|                                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Production                                                      |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Oil (MBbls)                                                     |   |               | 88     |   |              |   | 30 |   |   |   | 251 |   |   |   | 101 |   |
| Gas (MMcfs)                                                     |   |               | 366    |   |              |   | 92 |   |   |   | 964 |   |   |   | 342 |   |
| NGLs (MBbls)                                                    |   |               | 13     |   |              |   | 8 |   |   |   | 33 |   |   |   | 31 |   |
| Total (MBoe)                                                    |   |               | 162    |   |              |   | 54 |   |   |   | 445 |   |   |   | 189 |   |
| Total (Boe/d)                                                   |   |               | 1,758  |   |              |   | 586 |   |   |   | 1,630 |   |   |   | 692 |   |
|                                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Average prices                                                  |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Oil (per Bbl)                                                   |   | $                  | 69.25  |   |              | $      | 59.53 |   |   | $ | 70.88 |   |   | $ | 47.94 |   |
| Gas (per Mcf)                                                   |   |               | 4.68   |   |              |   | 2.52 |   |   |   | 4.97 |   |   |   | 2.79 |   |
| NGLs (per Bbl)                                                  |   |               | 38.04  |   |              |   | 34.38 |   |   |   | 40.05 |   |   |   | 25.23 |   |
| Total average price (per Boe)                                   |   | $                  | 51.21  |   |              | $      | 43.03 |   |   | $ | 53.74 |   |   | $ | 34.76 |   |
|                                                            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses (per Boe)                                    |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Lease operating expense (see Footnote 3)                        |   | $                  | 17.92  |   |              | $      | 20.15 |   |   | $ | 18.32 |   |   | $ | 16.56 |   |
| Severance tax expense                                           |   |               | 3.95   |   |              |   | 2.69 |   |   |   | 3.78 |   |   |   | 2.24 |   |
| Marketing expense                                               |   |               | 1.12   |   |              |   | 1.12 |   |   |   | 1.09 |   |   |   | 1.36 |   |
| Exploration expense                                             |   |               | 1.55   |   |              |   | 5.17 |   |   |   | 2.42 |   |   |   | 2.08 |   |
| Field operations expense                                        |   |               | 8.04   |   |              |   | - |   |   |   | 7.06 |   |   |   | - |   |
| General and administrative expense (see Footnote 1 and 2 below) |   |               | 28.65  |   |              |   | 43.24 |   |   |   | 40.22 |   |   |   | 23.95 |   |
| Depletion, depreciation and accretion                           |   |               | 14.16  |   |              |   | 18.42 |   |   |   | 16.04 |   |   |   | 16.41 |   |

| (1)  | General and administrative expense includes (i) acquisition related expenses of $0.12 per Boe and $1.13 per Boe, (ii) bonus accrual of $4.97 per Boe and none, (iii) non-cash stock compensation of $6.36 per Boe and $19.47 per Boe and (iv) non-recurring legal expenses of $1.43 per Boe and none for the three month periods ended September 30, 2010 and 2009, respectively. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | General and administrative expense includes (i) acquisition related expenses of $3.18 per Boe and $0.32 per Boe, (ii) bonus accrual of $8.52 per Boe and none, (iii) non-cash stock compensation of $11.57 per Boe and $9.33 per Boe, and (iv) non-recurring legal expenses of $1.34 per Boe and none for the nine month periods ended September 30, 2010 and 2009, respectively. |
| (3)  | Lease operating expense includes nonrecurring LOE of $1.11 per Boe and $2.28 per Boe and ad valorem taxes of $0.91 per Boe and $0.43 per Boe for the three and nine months ended September 30, 2010, respectively.                                                                                                                                                                |

----

----

----

----

----

|                                        | Nine months Ended September 30, |    |
|---------------------------------------------|---------------------------------|---------|
|                                        | 2010                            |    |   | 2009 |   |
|                                        | (In thousands)                  |    |
| Cash flows provided by operating activities | $                               | 3,646   |   |   | $ | 1,253 |   |
| Cash flows used in investing activities     |                            | (87,121 | ) |   |   | (10,518 | ) |
| Cash flows provided by financing activities |                            | 82,030  |   |   |   | 5,477 |   |
| Net decrease in cash and cash equivalents   | $                               | (1,445  | ) |   | $ | (3,788 | ) |

----

|                                                      | 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)                             |   | $      | 53,258 |   |   | $      | 195    |   |        | $      | 51,173 |   |        | $      | 1,144  |       |   | $ | 746 |   |
| Interest on long-term debt(2)                 |   |   | 5,601  |   |   |   | 1,227  |   |        |   | 4,127  |   |        |   | 200    |       |   |   | 47 |   |
| Operating lease obligations(3)                |   |   | 2,740  |   |   |   | 272    |   |        |   | 1,242  |   |        |   | 797    |       |   |   | 429 |   |
| Asset retirement obligations(4)               |   |   | 4,635  |   |   |   | -      |   |        |   | 733    |   |        |   | 111    |       |   |   | 3,791 |   |
| Employment agreements with executive officers |   |   | 1,179  |   |   |   | 295    |   |        |   | 884    |   |        |   | -      |       |   |   | - |   |
| Drilling contract commitment(5)               |   |   | 4,198  |   |   |   | 989    |   |        |   | 3,209  |   |        |   | -      |       |   |   | - |   |
| Total                                         |   | $      | 71,611 |   |   | $      | 2,978  |   |        | $      | 61,368 |   |        | $      | 2,252  |       |   | $ | 5,013 |   |

| (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 September 30, 2010 on our revolving credit facility debt and 6.25% to the outstanding term debt balance at September 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.                                                                                                                                                                  |
| (5) |   | On September 25, 2010 the Company entered into a twelve month drilling contract.  Our maximum liability under the drilling contract, which would apply if we terminated the contract before the end of its term, is approximately $4.1 million at September 30, 2010. |

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

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

----

----

| ExhibitNo. |   |  Description                                                                                                            |
|------------|--------|------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                         |
| 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).                   |

----

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

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

----