Magnum
Hunter Resources, Inc.600 E. Las Colinas Blvd., Suite 1100, Irving, TX  75039Phone (972) 401-0752   Fax  (972) 401-3110Internet Address: [website omitted]

FOR IMMEDIATE RELEASENEWS

New York Stock Exchange*
  Common    -  MHRAmerican Stock Exchange*   Bonds        -   MHR.B*   Warrants   -  MHR/WS/A

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# MAGNUM HUNTER REPORTS
RECORD FIRST QUARTER 2004 FINANCIAL RESULTS  YEAR-OVER-YEAR NET INCOME
UP 141% FIRST QUARTER 2004
PRODUCTION EXIT RATE OF APPROXIMATELY
208 MMCFE PER DAY, UP 10% COMPARED TO FIRST
QUARTER 2003 PRODUCTION LEVELS COMPANY ANNOUNCES FOUR
NEW GULF OF MEXICO DISCOVERIES

Irving, Texas, May 4, 2004, Magnum
Hunter Resources, Inc. (NYSE:MHR) announced today record financial results for the three
months ended March 31, 2004:

|                                                          | Three Months Ended | %
|--------------------------------------------------------- | ------------------ | -
|
|Daily Mmcfe Production Average                            |                    |  
|Average  Price Received per Mcfe (Net of Hedges)          |                    |  
|Daily Natural Gas Production Average (Mmcf/d)             |                    |  
|Daily Natural Gas Production Average (Percentage)         |                    |  
|Average Gas Price Received per Mcf (Net of Hedges)        |                    |  
|Daily Crude Oil Production Average (Mbbl/d)               |                    |  
|Average Crude Oil Price Received  per Bbl (Net of Hedges) |                    |  
|Total Operating Revenues (000's)                          |                    |  
|Net Income (000's)                                        |                    |  
|Income Per Common Share (Diluted)                         |                    |  
|Long Term Debt -To- Book Capitalization Ratio (%)         |                    |  

# First Quarter 2004
Financial Results

Magnum Hunter reported net income of
$19.3 million ($0.28 per diluted share) for the three months ended March 31, 2004, an
increase of 141% as compared to net income of $8.0 million ($0.12 per diluted share) for
the three months ended March 31, 2003. Beginning June 1, 2003, Magnum Hunter has been
expensing the fair market value of stock options newly granted, modified or settled during
2003 pursuant to FASB issued SFAS No. 123 and as allowed under the prospective method of
SFAS No. 148. For the three months ended March 31, 2004, the Company recorded non-cash
employee incentive compensation expense of $1.7 million, which is reflected in the
Companys increased general and administrative expenses. The tax adjusted cost for
this expense was $0.01 per diluted share for the three months ended March 31, 2004.

Total revenues for the first quarter
of 2004 were $100.4 million, an increase of 25% over revenues of $80.1 million reported
during the first quarter of 2003. Magnum Hunter reported an operating profit of $40.6
million during the first quarter of 2004. This represented an increase of 57% over the
similar period in 2003. Production lifting costs were $0.74 per Mcfe during the three
months ended March 31, 2004. Based on managements current estimate of growth in
daily production of 5%  8% during 2004 over the 2003 annual daily production
average, Magnum Hunter anticipates production lifting costs to average in the $0.75 
$0.80 per Mcfe produced range for fiscal 2004. Net cash provided by operating activities
increased by 54% to $58.2 million from $37.8 million reported during the first quarter of
2003.

Production volumes totaled 17.5
billion cubic feet equivalent (Bcfe) or 192.4 Mmcfe per day for the first quarter of 2004,
an increase of 5% over daily production volumes reported during the first quarter of 2003,
when adjusted for non-core property sales. Natural gas production was 68% of total
equivalent production volumes for the first quarter of 2004. A decline during the first
quarters reported production as compared to the fourth quarter of 2003 of 6% is
attributable to start-up delays, mechanical problems, and weather related down time,
primarily in the offshore Gulf of Mexico property base. The negative impact from these
production related issues during the first quarter 2004 totaled approximately 15.2 MMcfe
per day, almost all of which were attributable to the offshore Gulf of Mexico operations.
Production start-up delays accounted for approximately 7.5 Mmcfe per day, mechanical
problems interrupted about 5.9 Mmcfe per day, and weather down-time contributed around 1.8
Mmcfe per day. Had the approximate 15.2 Mmcfe per day of first quarter 2004 production not
been delayed, the implied daily production rate of 207.6 Mmcfe would have been 14% greater
than production volumes reported during the first quarter in 2003, when adjusted for
non-core property sales. This production rate would also have been 2% higher than the
Companys fourth quarter 2003 production rate. Magnum Hunters first quarter
2004 daily production exit rate was approximately 208 Mmcfe.

Natural gas prices realized by the
Company were $5.08 per Mcf for the first quarter of 2004, compared to $3.83 per Mcf
realized during the first quarter of 2003. Oil prices realized were $30.06 per barrel for
the first quarter of 2004, compared to $27.39 per barrel realized during the first quarter
of 2003. Both the natural gas and crude oil prices discussed above take into account the
commodity price hedges that were in place during such periods.

# First Quarter 2004
Operating Results

Magnum Hunter participated in the
drilling of 37 new wells during the first quarter of 2004, of which 30 were located
onshore and 7 wells were drilled offshore in the Gulf of Mexico. Of these new wells
drilled, 34 were deemed commercial successes with two dry holes drilled offshore and one
dry hole drilled onshore. The drilling results for the first quarter 2004 provided for an
overall success rate of 92%, an offshore drilling success rate of 71%, and an onshore
drilling success rate of 97%. Seven of the 37 wells were deemed exploratory and the
Company made five new discoveries during the quarter that provided for an exploration
success rate of 71%. Since entering the Gulf of Mexico in 1999, Magnum Hunter has
successfully completed 81 wells out of 100 new wells drilled, for an offshore drilling
success rate of 81%. Also since 1999, the Company has successfully drilled 66 new wells
out of 66 new wells attempted for a 100% success rate in its Morrow/Atoka/Strawn play
located in Southeastern New Mexico.

Highlights for the first quarter of
2004 in the Gulf of Mexico include new discoveries at West Cameron 457, East Cameron 205,
and Eugene Island 304. Two new discoveries at Vermilion 241and West Cameron 567 were
drilled during April 2004.

| | o | East Cameron 205: This well was drilled to a depth of 8,629 feet and found two
productive sands in the Bul 1 interval. Both sands were completed and tested at a combined
rate of over 22 Mmcfe per day. This well will be produced as a single completion,
initially from the lower sand. Facilities are currently being installed and first sales
are anticipated late in the third quarter of 2004. Magnum Hunter owns a 40% working
interest in this well.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | Eugene Island 304: Drilled to a depth of 4,700 feet, this well tested at rates up
to 10 Mmcfe per day and will be produced from a subsea completion tied back to the
Companys Eugene Island 302 platform. Sales are expected to begin in the second
quarter of 2004. Magnum Hunter owns a 50% working interest in this well.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | Vermilion 241: This well was drilled to a depth of 11,120 feet and gas pay was
found in two sand intervals. It is currently being completed and a caisson will be
installed. Currently, the Company expects production to commence during the fourth quarter
of 2004. Magnum Hunter owns a 50% working interest in this project.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | West Cameron 567: A new discovery was drilled to a depth of 12,248 feet and the
well logged over 70 feet of pay from a 300 foot Lentic sand interval. Production casing
has been set and the well is being suspended at the mud line pending installation of a
production platform and final completion of the well. Sales are anticipated to begin
during the fourth quarter of 2004. Magnum Hunter owns a 37.5% working interest in this
well.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | o | West Cameron 457: As announced earlier and discussed in the Companys March
11, 2004 Press Release, West Cameron 457 was drilled to a depth of 9,271 feet and tested
at rates up to 13 Mmcfe per day. This well is in the process of being tied back to the
Companys West Cameron 458 discovery, where a production platform is being set. Sales
are expected early in the third quarter of 2004. Up to three additional wells are
currently planned to be drilled from this facility by year-end 2004. Magnum Hunter owns a
40% working interest in both of the aforementioned blocks.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Additionally, two new wells are now
producing at Ship Shoal 358, where Magnum Hunter owns a 15% working interest. Gross
production from these two wells at Ship Shoal 358 is currently over 20 Mmcfe per day. Due
to the positive performance of the initial wells, a third well is currently being drilled
off the existing platform. Magnum Hunter has increased its working interest in this third
well to 49%.

Onshore highlights continue to center
on the Companys continuous drilling program in the Morrow/Atoka/Strawn formations of
Southeast New Mexico. Results remain favorable from our two rig drilling program. Further
expansion of this program is anticipated through year-end 2004 and into 2005 due to our
Companys increased mineral acreage ownership position. The Magnum 5 Fed Com #4 well
is one of the most recently drilled wells by the Company in the Shugart Strawn field. The
well began producing in mid-March and after being on-line for over 30 days, continues to
produce approximately 5 Mmcfe per day. Magnum Hunter is the operator of this well and owns
a 50% working interest.

# Commodity Hedges

The Company continues to utilize
commodity hedges as a means to provide a minimum base level of cash flow to meet
anticipated capital requirements. During the first quarter of 2004, the Company had
approximately 85 Mmcf per day of natural gas hedged through cost-less collars with a
weighted average floor price of $3.76 per Mmbtu and a weighted average ceiling price of
$5.78 per Mmbtu. Approximately 65% of the Companys first quarter 2004 natural gas
production was hedged. On the crude oil side, the Company had approximately 8,500 Bbls per
day hedged through cost-less collars with a weighted average floor price of $24.71 per
barrel and a weighted average ceiling price of $31.02 per barrel. Approximately 82% of the
Companys first quarter 2004 crude oil production was hedged.

# Management Comments

Responding to Magnum Hunters
record financial results for the first quarter of 2004, Mr. Gary C. Evans, Chairman,
President and CEO of the Company stated, Our Board of Directors and management team
are very proud of the Companys first quarter results. Due to a multitude of positive
steps undertaken by the Company over the past couple of years to enhance shareholder
value, we should continue our positive performance path throughout 2004. While our average
daily production rate during the first quarter was a disappointment, our first quarter
2004 production exit rate was not. Our Companys drilling success continues to drive
our organic production growth plans of 5%  8% this year. Bucking the industry trend
is reflective of the Companys high quality inventory of existing projects. Our
existing inventory of Gulf of Mexico OCS blocks increased significantly at the recent
March lease sale where Magnum Hunter was the high bidder on 55 new blocks, which will
expand our inventory to 235 OCS blocks if all are awarded. We expect current levels of
daily production to be supported during the second quarter of 2004 by approximately 16
Mmcfe per day of new production currently awaiting facility hook-up in the Gulf of Mexico.
With the combination of the i) year-end 2003 expiration of the
out-of-the-market commodity hedges inherited from Prize Energy, ii) the
reduction to our interest expense per Mcfe produced from $0.74 during the first quarter of
2003 to $0.55 during the first quarter of 2004 caused by the refinancing of higher cost
debt late last year, and iii) the sale of higher lifting cost properties, allowed for
Magnum Hunters net cash margin to substantially increase to a record of $3.10 per
Mcfe produced during the first quarter of 2004. This years capital expenditure
budget of between $150  $185 million reflects the Companys priority commitment
to maintain spending levels during 2004 well within the range of cash flow generated from
operations. Our goal of further reducing our financial leverage to the low 50% range by
year-end continues to be a priority. The current business environment remains excellent
for consistently improving upon our track record of creating incremental value for our
shareholders. Magnum Hunter is well positioned financially, operationally, and technically
to take advantage of accretive opportunities that we anticipate during 2004, while always
maintaining our selectivity and discipline.

# Conference Call

A conference call will be hosted by
the Senior Management of Magnum Hunter Resources, Inc. on Tuesday, May 4, 2004 at 9:00
a.m. central time. The subject of the conference call will be to discuss the financial and
operating results of Magnum Hunter for the first quarter ended March 31, 2004. If you wish
to participate in the call, please dial in toll free (800) 706-3079 at 8:50 a.m. central
time on Tuesday, May 4, 2004. Should you wish to participate, there will be a Q & A
session following the presentation by management.

International
callers, please dial (706) 643-1963.

A Web Broadcast will also be
available for listeners on the Magnum Hunter Web Site. Instructions are:

Go to www.magnumhunter.com
                                    Go to Investor Relations
                                    Go to Webcasts/Conference Calls

#

Magnum Hunter Resources, Inc. is one
of the nations fastest growing independent exploration and development companies
engaged in three principal activities: (1) the exploration, development and production of
crude oil, condensate and natural gas; (2) the gathering, transmission and marketing of
natural gas; and (3) the managing and operating of producing oil and natural gas
properties for interest owners.

The information in this release
includes certain forward-looking statements that are based on assumptions that in the
future may prove not to have been accurate. Those statements, and Magnum Hunter Resources,
Inc.s business and prospects, are subject to a number of risks, including volatility
of oil and gas prices, the need to develop and replace reserves, the substantial capital
expenditures required to fund its operations, environmental risks, drilling and operating
risks, risks related to exploration and development drilling, uncertainties about
estimates of reserves, competition, government regulation, and the ability of the company
to implement its business strategy. These and other risks are described in the
companys reports that are available from the SEC.

# FOR FURTHER
INFORMATION CONTACT: M. BRADLEY DAVIS SENIOR VICE PRESIDENT
 CAPITAL MARKETS (972) 401-0752

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# MAGNUM HUNTER
RESOURCES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands of
dollars)

|                                                                                | March 31, | December 31,
|------------------------------------------------------------------------------- | --------- | ------------
|
|ASSETS                                                                          |           |             
|Current Assets                                                                  |           |             
|                                                                                |           |             
|Cash and cash equivalents                                                       |           |             
|Accounts receivable - trade, net of allowance of $4,338 and $4,573 respectively |           |             
|Deferred income taxes, current                                                  |           |             
|Deposits                                                                        |           |             
|Other current assets                                                            |           |             
|                                                                                |           |             
|Total Current Assets                                                            |           |             
|Property, Plant, and Equipment                                                  |           |             
|Oil and gas properties, full cost method                                        |           |             
|Unproved                                                                        |           |             
|Proved                                                                          |           |             
|Gas processing plants and pipelines                                             |           |             
|Other property                                                                  |           |             
|                                                                                |           |             
|Total Property, Plant and Equipment                                             |           |             
|Accumulated depreciation, depletion, amortization and impairment                |           |             
|                                                                                |           |             
|Net Property, Plant and Equipment                                               |           |             
|                                                                                |           |             
|Other Assets                                                                    |           |             
|Deferred financing costs and other                                              |           |             
|Goodwill                                                                        |           |             
|                                                                                |           |             
|Total Assets                                                                    |           |             
|                                                                                |           |             
|LIABILITIES AND STOCKHOLDERS' EQUITY                                            |           |             
|Current Liabilities                                                             |           |             
|Trade payables and accrued liabilities                                          |           |             
|Accrued interest                                                                |           |             
|Suspended revenue payable                                                       |           |             
|Derivative liabilities, current                                                 |           |             
|Current maturities of long-term debt                                            |           |             
|                                                                                |           |             
|Total Current Liabilities                                                       |           |             
|Long-Term Liabilities                                                           |           |             
|Long-term debt, less current maturities                                         |           |             
|Asset retirement obligations                                                    |           |             
|Derivative liabilities, non-current                                             |           |             
|Deferred income taxes payable                                                   |           |             
|Other non-current liabilities                                                   |           |             
|Stockholders' Equity                                                            |           |             
|Preferred stock - $.001 par value; 10,000,000 shares authorized, 216,000        |           |             
|designated as Series A; 80,000 issued and outstanding, liquidation amount $0    |           |             
|Common Stock - $.002 par value; 200,000,000 shares authorized,                  |           |             
|73,118,486 and 71,977,759 shares issued, respectively                           |           |             
|Additional paid-in capital                                                      |           |             
|Accumulated other comprehensive loss                                            |           |             
|Retained earnings                                                               |           |             
|Common stock in deferred compensation plan, at cost (34,416 shares)             |           |             
|Unearned common stock in KSOP, at cost (1,012,203 shares)                       |           |             
|                                                                                |           |             
|                                                                                |           |             
|Treasury stock, at cost (3,942,294 shares)                                      |           |             
|                                                                                |           |             
|Total Stockholders' Equity                                                      |           |             
|                                                                                |           |             
|Total Liabilities and Stockholders' Equity                                      |           |             
|                                                                                |           |             

# MAGNUM HUNTER
RESOURCES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (in thousands, except
for shares and per share amounts)

|                                                                         | Three Months Ended March 31,
|------------------------------------------------------------------------ | ----------------------------
|
|Operating Revenues:                                                      |                             
|Oil and gas sales                                                        |                             
|Gas gathering, marketing and processing                                  |                             
|Oil field services                                                       |                             
|                                                                         |                             
|Total Operating Revenues                                                 |                             
|                                                                         |                             
|Operating Costs and Expenses:                                            |                             
|Oil and gas production lifting costs                                     |                             
|Production taxes and other costs                                         |                             
|Gas gathering, marketing and processing                                  |                             
|Oil field services                                                       |                             
|Depreciation, depletion, amortization and accretion                      |                             
|Gain on sale of assets                                                   |                             
|General and administrative                                               |                             
|                                                                         |                             
|Total Operating Costs and Expenses                                       |                             
|                                                                         |                             
|Operating Profit                                                         |                             
|Equity in earnings of affiliate                                          |                             
|Other income                                                             |                             
|Costs associated with early retirement of debt                           |                             
|Non-cash hedging adjustments                                             |                             
|Interest expense                                                         |                             
|                                                                         |                             
|Income Before Income Tax                                                 |                             
|Provision for income tax expense                                         |                             
|Current                                                                  |                             
|Deferred                                                                 |                             
|                                                                         |                             
|Total Provision for Income Tax Expense                                   |                             
|                                                                         |                             
|Income Before Cumulative Effect of a Change in Accounting Principle      |                             
|Cumulative effect of a change in accounting principle, net of income tax |                             
|expense of $244                                                          |                             
|                                                                         |                             
|Net Income                                                               |                             
|                                                                         |                             
|Income per Common Share - Basic                                          |                             
|Income before cumulative effect of a change in accounting principle      |                             
|Cumulative effect of a change in accounting principle                    |                             
|                                                                         |                             
|Income per Common Share - Basic                                          |                             
|                                                                         |                             
|Income per Common Share - Diluted                                        |                             
|Income before cumulative effect of a change in accounting principle      |                             
|Cumulative effect of a change in accounting principle                    |                             
|                                                                         |                             
|Income per Common Share - Diluted                                        |                             
|                                                                         |                             
|Common Shares Used in Per Share Calculation                              |                             
|Basic                                                                    |                             
|                                                                         |                             
|Diluted                                                                  |                             
|                                                                         |                             

# MAGNUM HUNTER
RESOURCES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)

|                                                                              | For the Three Months Ended
|----------------------------------------------------------------------------- | --------------------------
|
|
|CASH FLOW FROM OPERATING ACTIVITIES:                                          |                           
|Net Income                                                                    |                           
|Adjustments to reconcile net income to cash provided by operating activities: |                           
|Cumulative effect of a change in accounting principle                         |                           
|Depreciation, depletion, amortization and accretion                           |                           
|Amortization of deferred financing costs                                      |                           
|Costs associated with early retirement of debt                                |                           
|Deferred income taxes                                                         |                           
|Equity in income of unconsolidated affiliate                                  |                           
|Gain on sale of assets                                                        |                           
|Minority interest in consolidated subsidiary                                  |                           
|Non-cash hedging adjustments                                                  |                           
|Stock compensation                                                            |                           
|Changes in certain assets and liabilities, net of the effect of acquisitions: |                           
|                                                                              |                           
|Accounts and notes receivable                                                 |                           
|Deposits and other current assets                                             |                           
|Accounts payable and accrued liabilities                                      |                           
|Payment (refund) of income taxes                                              |                           
|                                                                              |                           
|Net Cash Provided by Operating Activities                                     |                           
|                                                                              |                           
|CASH FLOWS FROM INVESTING ACTIVITIES:                                         |                           
|Proceeds from sale of assets, net of purchase price adjustments               |                           
|Additions to property and equipment                                           |                           
|Property sales price adjustments                                              |                           
|Distribution from unconsolidated affiliate                                    |                           
|Investment in unconsolidated affiliate                                        |                           
|                                                                              |                           
|Net Cash Used in Investing Activities                                         |                           
|                                                                              |                           
|CASH FLOWS FROM FINANCING ACTIVITIES:                                         |                           
|Proceeds from issuance of debt                                                |                           
|Redemption of notes payable                                                   |                           
|Fees paid related to financing activities                                     |                           
|Payments of principal on debt and production payment                          |                           
|Loan made to KSOP                                                             |                           
|Proceeds from issuance of common stock                                        |                           
|Purchase of common stock for deferred compensation plan                       |                           
|Purchase of treasury stock                                                    |                           
|Increase in restricted cash for payment of notes payable                      |                           
|                                                                              |                           
|Net Cash Used in Financing Activities                                         |                           
|                                                                              |                           
|NET (DECREASE) INCREASE  IN CASH AND CASH EQUIVALENTS                         |                           
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                              |                           
|                                                                              |                           
|CASH AND CASH EQUIVALENTS AT END OF PERIOD                                    |                           
|                                                                              |                           
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                             |                           
|Cash paid for interest                                                        |                           
|                                                                              |                           
|Cash paid (refunded) for income taxes                                         |                           
|                                                                              |                           
|Non-cash accruals for employee incentives                                     |                           
|                                                                              |                           
|                                                                              |