A method for stimulating an earth formation according to a selected stimulation scenario for extracting hydrocarbons from the earth formation, the method characterized by: selecting a stimulation scenario for stimulating the earth formation using a processor; applying a modified Mohr-Coulomb model that is configured to estimate behavior of a rock formation during the stimulation scenario using the processor, the modified Mohr-Coulomb model having a term representing dilatation in an out-of-plane orientation with respect to a fracture plane of the earth formation; predicting, with the processor, a fracture and damage network using the modified Mohr-Coulomb model; converting the fracture and damage network into permeability using the processor; simulating, with the processor, fluid flow in the earth formation using the permeability to predict hydrocarbon production; computing, with the processor, a value of a metric for hydrocarbon production for the selected stimulation scenario; iterating, with the processor, the selecting, the applying, the predicting, the converting, the simulating, and the computing, for one or more different stimulation scenarios, until the metric value meets or exceeds a threshold value; and stimulating the earth formation using a stimulation treatment system according to the stimulation scenario having the metric value that meets or exceeds the threshold value, characterised in that the term representing dilatation in an out-of-plane orientation is with respect to a flow tensor M ij = N ij σ − 1 1 + q − N ij σ − 3 1 − q + q C φ N ij σ − 2, where N ij σ-1 is a stress eigentensor aligned with the orientation of a first principal stress, N ij σ-2 is a stress eigentensor aligned with the orientation of a second principal stress, N ij σ-3 is a stress eigentensor aligned with the orientation of a third principal stress, q is an internal friction parameter, and C φ is a non-dimensional function, and wherein the term representing dilatation in an out-of-plane orientation with respect to the flow tensor is selecting a stimulation scenario for stimulating the earth formation using a processor; applying a modified Mohr-Coulomb model that is configured to estimate behavior of a rock formation during the stimulation scenario using the processor, the modified Mohr-Coulomb model having a term representing dilatation in an out-of-plane orientation with respect to a fracture plane of the earth formation; predicting, with the processor, a fracture and damage network using the modified Mohr-Coulomb model; converting the fracture and damage network into permeability using the processor; simulating, with the processor, fluid flow in the earth formation using the permeability to predict hydrocarbon production; computing, with the processor, a value of a metric for hydrocarbon production for the selected stimulation scenario; iterating, with the processor, the selecting, the applying, the predicting, the converting, the simulating, and the computing, for one or more different stimulation scenarios, until the metric value meets or exceeds a threshold value; and stimulating the earth formation using a stimulation treatment system according to the stimulation scenario having the metric value that meets or exceeds the threshold value, characterised in that the term representing dilatation in an out-of-plane orientation is with respect to a flow tensor M ij = N ij σ − 1 1 + q − N ij σ − 3 1 − q + q C φ N ij σ − 2, where N ij σ-1 is a stress eigentensor aligned with the orientation of a first principal stress, N ij σ-2 is a stress eigentensor aligned with the orientation of a second principal stress, N ij σ-3 is a stress eigentensor aligned with the orientation of a third principal stress, q is an internal friction parameter, and C φ is a non-dimensional function, and wherein the term representing dilatation in an out-of-plane orientation with respect to the flow tensor is