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*   Warrants   -  MHR/WS/A

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# MAGNUM HUNTER REPORTS
RECORD SECOND QUARTER 2004 FINANCIAL RESULTS YEAR-OVER-YEAR NET
INCOME UP 457%

Irving, Texas, August 3, 2004, Magnum
Hunter Resources, Inc. (NYSE:MHR) announced today financial and operating results for the
second quarter and six months ended June 30, 2004:

|                                                               | Three Months Ended | Six Month Ended
|-------------------------------------------------------------- | ------------------ | ---------------
|
|Daily Mcfe Production Average                                  |                    |                
|Average Mcfe Price Received (Net of Hedges)                    |                    |                
|Daily Natural Gas Production Average (Mcf/d)                   |                    |                
|Daily Natural Gas Production Average (%)                       |                    |                
|Average Gas Price Received (Net of Hedges)                     |                    |                
|Daily Crude Oil Production Average (Bbl/d)                     |                    |                
|Average Crude Oil Price Received (Net of Hedges)               |                    |                
|Total Operating Revenues (000's)                               |                    |                
|Cost of Early Debt Retirement (000's)                          |                    |                
|Tax Adjusted Cost of Early Debt Retirement Per Share (Diluted) |                    |                
|Net Income -  (000's)                                          |                    |                
|Income Per Common Share (Diluted)                              |                    |                
|Long Term Debt-to-Book Capitalization Ratio (%)                |                    |                

# Second Quarter 2004
Financial Results

Magnum Hunter reported net income of
$23.2 million ($0.33 per diluted share), after taxes, for the three months ended June 30,
2004, an increase of 457% as compared to net income of $4.2 million ($0.06 per diluted
share), after taxes, for the three months ended June 30, 2003. Beginning June 1, 2003,
Magnum Hunter has been expensing the fair market value of stock options newly granted,
modified or settled pursuant to FASB issued SFAS No. 123 and as allowed under the
prospective method of SFAS No. 148. For the three months ended June 30, 2004, the Company
recorded non-cash employee incentive compensation expense of $1 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 June
30, 2004.

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Total revenues for the second quarter
of 2004 were $110.0 million, an increase of 40% over revenues of $78.4 million reported
during the second quarter of 2003. Magnum Hunter reported an operating profit of $45.0
million during the second quarter of 2004. This represented a 110% increase over the
similar period in 2003. Production lifting costs were $0.81 per Mcfe during the three
months ended June 30, 2004, and included $800 thousand of workover expense. Adjusting for
second quarter 2004s workover expense, production lifting costs were $0.77 per Mcfe.
Based on managements current estimate of growth in daily production in the range of
6%  12% during 2004, Magnum Hunter anticipates production lifting costs to average
in the $0.75  $0.80 per Mcfe produced range for fiscal 2004.

Production volumes totaled 18.7
billion cubic feet equivalent (Bcfe) or 205.8 MMcfe per day for the second quarter of
2004, an increase of 3% over production volumes reported during the second quarter of
2003, when adjusted for non-core property divestitures. Natural gas production was 69% of
total equivalent production volumes for the second quarter of 2004. The Companys
second quarter 2004 volumes were negatively impacted by approximately 5.3 MMcfe per day
due to delays in new platform and pipeline construction, production off-line during the
quarter due to mechanical and weather related issues, and restricted production due to
pipeline limitations.

Natural gas prices realized by the
Company were $5.21 per Mcf for the second quarter of 2004, compared to $3.37 per Mcf
realized during the second quarter of 2003. Oil prices realized were $31.42 per barrel for
the second quarter of 2004, compared to $26.35 per barrel realized during the second
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 Six Months of 2004
Financial Results

For the first six months of 2004, net
income was $42.5 million ($0.61 per diluted share), after taxes, as compared to net income
of $12.2 million ($0.18 per diluted share), after taxes, for the six months ended June 30,
2003, an increase of 249%. Costs associated with the early retirement of $80 million of
10% Senior Notes reduced net income by $4.1 million (pre-tax) during the first six months
of 2003, or $0.04 per diluted share when tax-adjusted. Additionally the first six months
of 2003 also reflect the non-cash loss from the adjustment of the net carrying value of an
unconsolidated affiliate of $719 thousand (pre-tax), or $0.01 on a tax-adjusted basis per
diluted share.

Effective June 1, 2003, Magnum Hunter
began expensing the fair market value of stock options newly granted, modified or settled
during 2003 pursuant to the FASB issued SFAS No. 123 and as allowed under the prospective
method of SFAS No. 148. For the six months ended June 30, 2004, the company recorded
non-cash employee incentive compensation expense of $2.7 million, which is reflected in
general and administrative expenses. The tax-adjusted cost for this expense was $0.02 per
diluted share for the six months ended June 30, 2004.

Total revenues for the first six
months of 2004 were $210.4 million compared to $158.5 million in the corresponding 2003
period, a 33% increase. Magnum Hunter reported an operating profit of $85.6 million during
the first six months of 2004. This represented an increase of $38.2 million or 81% over
the similar period in 2003. Net cash provided by operating activities increased by $12.5
million or 12% to $113.9 million from $101.4 million reported at the end of the first six
months of 2003.

Oil and natural gas production was
36.2 Bcfe or 199.1 MMcfe per day during the first six months of 2004 compared to 35.6 Bcfe
or 196.6 MMcfe per day for the corresponding 2003 period, an increase of 4% when adjusted
for non-core property divestitures. Natural gas production was 68% of total equivalent
production volumes for the first six months of 2004.

Natural gas prices realized by the
Company were $5.15 per Mcf for the first six months of 2004, compared to $3.59 per Mcf
realized during the first six months of 2003. Oil prices realized were $30.76 per barrel
for the first six months of 2004, compared to the $26.85 per barrel realized during the
first six months of 2003. Both the natural gas and crude oil prices discussed herein take
into account the commodity price hedges that were in place during such periods.

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# Second Quarter 2003
Operating Results

Magnum Hunter participated in the
drilling of 50 new wells during the second quarter of 2004, 36 wells located onshore and
14 wells located offshore in the Gulf of Mexico. Of these new wells drilled, 49 were
deemed commercial successes with one dry hole drilled offshore, which provided for an
overall success rate of 98% and an offshore drilling success rate of 93%. Thirteen of the
50 wells were deemed exploratory and the Company made 12 new discoveries during the
quarter that provided for an exploration success rate of 92%. Since entering the Gulf of
Mexico in 1999, Magnum Hunter has successfully drilled 94 commercial discoveries out of
114 new wells attempted, for an offshore drilling success rate of 82%.

# Offshore Highlights

South Marsh Island 113 is a two-well
field discovery that was drilled in May 2004. The two wells will be tied into a common
platform production facility and produced via a pipeline to South Marsh Island 108.
Construction should begin in the third quarter with production beginning sometime in the
fourth quarter. Magnum Hunter owns a 50% working interest in these wells.

West Cameron 567 was drilled in April
2004. Magnum Hunter owns a 37.5% working interest in the four lease blocks comprising the
prospect area. First production is anticipated during the third quarter of 2004. Gryphon
Exploration Company is operator of the block.

Magnum Hunter owns a 100% working
interest in Main Pass 99, drilled in May 2004. A new pipeline is in the process of being
constructed and will tie the well back to the Magnum Hunter Main Pass 178 A Platform.
Initial production is anticipated during the fourth quarter of this year.

A discovery was drilled on Vermilion
64 lease block where Magnum Hunter owns a 25% working interest. The exploratory well was
drilled to 9,590 feet and discovered oil and gas pay in a single sand package. The well
has been flow tested at a rate of 10 million cubic feet of gas and 350 barrels of
condensate per day. A caisson structure has been installed over the well and is currently
awaiting platform and pipeline installation. First production is expected in the fourth
quarter 2004.

# Onshore Highlights

The Chapparal 33 Fed Com #2 was
drilled in the 4th Quarter of last year and began sales from a single,
naturally completed zone in December of last year. In May 2004 we added additional
perforations and fraced the well. Production increased from approximately 100 Mcf/d to
over 5 MMcf/d plus 135 Bopd following the treatment. Actual production for the month of
July averaged approximately 5.7 MMcf/d and 120 Bopd. Magnum Hunter owns an 81% working
interest in this well, which is located in the Quail Ridge area of Lea County, New Mexico.

The Liberty 24 Fed Com #1 was a
step-out well drilled on a farmout from ChevronTexaco on the southeast side of the White
City Field in Eddy County, New Mexico. The well began producing from a natural completion
in the lowest Morrow sand in late May at a rate of over 3.5 MMcf/d through a temporary
sales line. A new production sales line is being installed, which will provide additional
pipeline capacity and will allow additional sands to be completed that are currently
behind pipe. Magnum Hunter owns a 100% working interest in this well.

In South Texas, we have drilled the
Earl Baker #7 in the Brazil Field of McMullen County. The 13,000 well encountered
multiple sands, and is expected to begin sales by mid-August at a rate in excess of 10
Mmcfe per day. The Earl Baker #8 has been approved by our partners and should spud around
September 1st. We also expect to be drilling the Earl Baker #9 prior to
year-end.

In the Texas Panhandle, we have been
actively recompleting wells to the Granite Wash zone in the Red Deer Creek Field in
Roberts and Hemphill Counties, Texas. To-date, six wells have been recompleted, adding 3.5
MMcfe per day of incremental production. The recompletions cost $200,000 per well and the
initial rates have averaged 2.3 MMcfe per day, with one well starting at a rate of over 5
MMcfe per day. Magnum Hunters working interest ranges from 69% to 100%. We have
identified another six wells that can be recompleted with up to 20 additional wells that
can be drilled on our existing mineral acreage position.

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# 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 second quarter of 2004, the Company had
approximately 88.3 MMcf per day hedged through cost-less collars with a weighted average
floor price of $3.85 per MMbtu and a weighted average ceiling price of $5.84 per MMbtu.
Approximately 63% of the Companys second quarter 2004 natural gas production was
hedged. For the remainder of 2004, Magnum Hunter has approximately 86.7 MMcf per day
hedged through cost-less collars with a weighted average floor price of $4.02 per MMbtu
and a weighted average ceiling price of $6.00 per MMbtu.

On the crude oil side, the Company
had approximately 7,000 Bbls per day hedged through cost-less collars with a weighted
average floor price of $23.57 per barrel and a weighted average ceiling price of $30.16
per barrel during the second quarter of 2004. Approximately 65% of the Companys
second quarter 2004 crude oil production was hedged. For the remainder of 2004, Magnum
Hunter has approximately 4,000 Bbls per day hedged through cost-less collars with a
weighted average floor price of $23.25 per barrel and a weighted average ceiling price of
$28.36 per barrel.

# Management Comments

Responding to Magnum Hunters
financial and operating results for the second quarter of 2004, Mr. Gary C. Evans,
Chairman, President and Chief Executive Officer of the Company stated, This was a
very busy and exciting period for Magnum Hunter. We have now completed our largest single
property acquisition and equity offering in our Companys history. These two events
will position Magnum Hunter in a manner that will enable us to more quickly grow our most
profitable onshore core region and to do so with an improved capital structure. The equity
offering has also provided the Company the opportunity to redeem one-third of our
outstanding 9.6% high yield debt in order that we may further reduce our overall interest
cost. Our interest expense per Mcfe produced dropped to $0.52 this quarter and is
anticipated to decline to the mid forty-cent range in the third quarter. We came very
close to reporting as much net income during this quarter than we made during the entire
twelve months of last year. Based upon current commodity prices, Magnum Hunter is well
positioned to report to its shareholders this fiscal year net income in the $100 million
range on a revenue base of $450 million.

# Conference Call

A conference call will be hosted by
the Senior Management of Magnum Hunter Resources, Inc. on Monday, August 3, 2004 at 10:00
a.m. central time. The subject of the conference call will be to discuss the financial and
operating results of Magnum Hunter for the second quarter and six months ended June 30,
2004. If you wish to participate in the call, please dial in toll free (800) 706-3079 at
9:50 a.m. central time on Tuesday, August 3, 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)

|                                                                             | June 30, | December 31,
|---------------------------------------------------------------------------- | -------- | ------------
|
|ASSETS                                                                       |          |             
|Current Assets                                                               |          |             
|                                                                             |          |             
|Cash and cash equivalents                                                    |          |             
|Accounts receivable - trade, net of allowance of $4,348 and $4,331           |          |             
|respectively                                                                 |          |             
|Deferred income taxes, current                                               |          |             
|Deposits                                                                     |          |             
|Land held for sale                                                           |          |             
|Prepaid drilling costs                                                       |          |             
|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                                           |          |             
|Acquisition escrow                                                           |          |             
|Goodwill                                                                     |          |             
|                                                                             |          |             
|Total Assets                                                                 |          |             
|                                                                             |          |             
|LIABILITIES AND STOCKHOLDERS' EQUITY                                         |          |             
|Current Liabilities                                                          |          |             
|                                                                             |          |             
|Trade payables and other current liabilities                                 |          |             
|Accrued interest                                                             |          |             
|Other accrued liabilities                                                    |          |             
|Revenues payable                                                             |          |             
|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,               |          |             
|88,402,746 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                                   |          |             
|                                                                             |          |             

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

|                                                                    | Three Months Ended
June 30, | Six Months Ended
June 30,
|------------------------------------------------------------------- | --------------------------- | -------------------------
|
|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                 |                             |                          
|Loss (Gain) on sale of assets                                       |                             |                          
|General and administrative                                          |                             |                          
|                                                                    |                             |                          
|Total Operating Costs and Expenses                                  |                             |                          
|                                                                    |                             |                          
|Operating Profit                                                    |                             |                          
|Equity in losses 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                                                             |                             |                          
|                                                                    |                             |                          

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

|                                                                              | For the Six Months Ended
June 30,
|----------------------------------------------------------------------------- | ---------------------------------
|
|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 losses 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:                                    |                                  
|Accounts 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                                           |                                  
|Deposit of funds into escrow for pending acquisition of properties            |                                  
|(Increase) decrease in other assets                                           |                                  
|Payment received on note receivable                                           |                                  
|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                          |                                  
|Increase in notes receivable from affiliate                                   |                                  
|Loan made to KSOP                                                             |                                  
|Proceeds from issuance of common stock                                        |                                  
|Proceeds from public offering 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 Provided by (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                                     |                                  
|                                                                              |