1 Independent Petroleum Association of America 10 th Annual Oil and Gas Symposium April 19 – 21,...

1

Independent Petroleum Association of America

10th Annual Oil and Gas Symposium

April 19 – 21, 2004

New York, New York

2

Company Overview

Long-lived reserves, high quality, and geographically concentrated in the heart of the oil patch (Texas, Oklahoma, New Mexico, Arkansas and Gulf of Mexico)

Reserve replacement ratio of 436% since 2001 (three years)

Three year average Finding and Development Cost (all sources) $1.22/Mcfe

Production 70% natural gas and 30% crude oil

5+ year drilling inventory of around 2,640 onshore locations/232 OCS Blocks

High historical drilling success rate – 93% (five year average)

We operate approximately 80% of our properties

Diversified down the food chain as an operator, producer, gatherer, processor and marketer of our own products

3

Principal Producing Areas

Offshore Continental Shelf

Corporate Headquarters

District & Field Offices

New Core AreaCoalbed Methane Play

San Juan Basin

1+ Tcf Potential

OffshoreOffshore

82 Bcfe76% gas10% of total reservesPV-10 $308 million

Gulf CoastGulf Coast

72 Bcfe83% gas 9% of total reservesPV-10 $143 million

Permian BasinPermian Basin


Mid-ContinentMid-Continent


New Core AreaCoalbed Methane Play

San Juan Basin

1+ Tcf Potential

OffshoreOffshore


Gulf CoastGulf Coast

72 Bcfe83% gas 9% of total reservesPV-10 $143 million

Permian BasinPermian Basin


Mid-ContinentMid-Continent


4

Mineral Leasehold Acreage Ownership Position

As of March 1, 2004(Net Acres)

WY

NV

UTCA

AZ

ND

NM

TX

OK

KS

AR

LA

MO

IL

IN

MS

GOM

1,379,69726,329

11,261

61,187

1,308

7,006

1,804,535

130,92327,325

67,579

209,532

1,200

140310

6,873

283

80

41,726

1,625

105,098

353,560

8,063

25,555

45,486

12,873

382 416

480

1,348

12,519

371

86,001

2,634

2,720

350,599

455,406 1,814,731

1,508,156

Undeveloped 470,343 Acres

Developed 589,999 Acres

Remaining Acreage Options 5,541,409 Acres

Total 8,566,096 Acres

Leased Option Acreage 1,964,345 Acres

CO

720

5

New Core AreaSan Juan Basin

Stratigraphic Column

Mes

aver

de G

roup

The Menefee Formation of the Upper Cretaceous Mesaverde Group contains abundant coal beds that are estimatedto contain 34 Tcf in the San Juan Basin

Until recently, the resource potential inthe Menefee coals was overlooked due to the development and exploitation of the Fruitland coal

Dakota Ss

Mancos Sh

Point Lookout Ss

Menefee Fm

Cliff House Ss

Lewis Sh

Pictured Cliffs Ss

Fruitland Coal

Kirkland SH

Coal Deposit

Cretaceous

Calculation of Resource Potential

Upper Menefee Coal Structure Map

The Upper and Lower Menefee coals contain an estimated combined resource potential of 1.88 Tcf of reserves on Magnum Hunter’s acreage position

Recoverable gas-in-place is estimated at 504 Bcf and 626 Bcf for the Upper and Lower Menefee coals (at a 60% recovery factor), respectively, for a combined recovery of 1.13 Tcf

Gas content for the coals has been estimated by in-house Magnum Hunter personnel from 20 scf/ton to 70 scf/ton, with the higher of the content being in the Lower Menefee coal

(New Magnum Hunter Lease Option Acreage)Menefee Coal Evaluation

1,130Dry Gas Ultimate Recovery (Bscf)1

60%Recovery Factor (%)1,883GIP (Bscf)

107Net Pay (ft)167,089Area (acres)

17,800,876Net acre-ft2379Coal Density (ton/acre-ft)48,133Eff. Drainage Radius (ft)1.750Coal Density (g/cc)

63.5Recoverable GIP (Mscf/acre-ft)44Gas Content (scf/ton)

New MexicoState:

Magnum Hunter Resources/CDXOperator:Menefee FormationReservoir:Grand Total/Southern San Juan BasinLease:

(1) The reserves presented herein may differ from the forecast due to economic limits reached.

Volumetric Calculation

Property Description

McKinley, Sandoval, San Juan, Cibola, Bernalillo, Valencia, Counties:Catron, Socorro

U.S. Coalbed Statistics

San Juan(Menefee Coal)

Recovery Factor

Cherokee

Raton

Uinta

BlackWarrior Green

River

San Juan(Fruitland Coal)

PowderRiver

Piceance

0.00

0.10

0.20

0.30

0.40

0.50

0.70

0.80

0.90

1.00

Rec

ove

ry F

acto

r (f

ract

ion

)

Appalachiac.

Source: Merrill Lynch


Net

Co

al T

hic

knes

s (f

eet)

Net Coal Thickness

Arkoma

Canaba

Cherokee

Piceance

Raton

Uinta


PowderRiver

GreenRiverBlack

Warrior

ForestCity

0

10

20

30

40

50

60

70

80

90

100

AppalachiaC.

AppalachiaN.

95


Natural Gas Content1000

Arkoma

Cherokee

Piceance

Raton

Uinta

PowderRiver

GreenRiver

ForestCity

BlackWarrior


Canaba

0

100

200

300

400

500

600

700

800

900

Gas

Co

nte

nt

(scf

/to

n)

AppalachiaC.

AppalachiaN.

50

Co

al D

ensi

ty (

g/c

c)

Coal Density

Cherokee RatonBlackWarrior

GreenRiver

PowderRiverPiceance

Uinta

1.00

1.10

1.20

1.40

1.50

1.60

1.70

1.80

1.90

2.00



1.32

0.60

7 Sources: Morgan Stanley Equity Research; Herold’s Company

Average Transaction Price

Per MCFE

Panoma 06/96

$34.7 MMPermian Basin

04/97$133.8 MM

TEL Offshore03/98

$10.4 MM

Spirit 7612/98

$25.5MM

Vastar06/99

$32.5 MM

Dynegy11/99

$4.3 MM

GE Capital06/00

($23 MM)

Louis Dreyfus08/00

($15.8)

Mallon09/01

$31.3 MM

Prize Energy03/02

$550 MM

Peak ll($1.06/mcfe)

Trough l($0.88/mcfe)

Trough ll($0.75/mcfe)

Peak lll($1.21/mcfe)

G.E. Capital09/02

($50 MM)

Misc. Sales09/02 –12/02

($17 MM)

So. TX11/02

($33 MM)

Peak l($0.87/mcfe)

60/40 Gas/Oil 12 Mth. Strip

$6.00

$5.00

$4.00

$3.00

$2.00

$1.00

Trough Ill($0.83/mcfe)

So. LA05//03

($13.4 MM)

Acquisition/Divestiture HistoryTiming is Key to Profitable Growth

12/24/0301/05/96

08/02/96

02/28/97

09/26/97

04/24/98

11/20/98

06/18/99

01/14/00

08/11/00

03/09/01

10/05/01

05/10/02

12/06/02

07/03/03

8

Mid-Continent $10 Million

7%

Mid-Continent $11 Million

6%Permian Basin

$50 Million

33%

Permian Basin $39 Million

23%

Gulf Coast (Onshore)$5 Million

3%

Gulf Coast (Onshore)$6 Million

3%

2003 Expenditures2004 Capital Budget

2003$175 Million

2004$150 Million

Gulf of Mexico

$119 Million

68%

Gulf of Mexico

$85 Million

57%

9

Magnum Hunter GOM Lease Ownership and Discoveries

Gulf of Mexico

MH Gulf of Mexico Map.jpg

Louisiana

Gulf of Mexico

New Orleans

High

Island

West Cameron East

Cameron

Vermillion

South Marsh Island Eugene Island

Ship ShoalSouth

Timbalier

Grand Isle

Ewing Bank

Green Canyon

Main Pass

MP 178

Lake Charles

ST 265

Beaumont

Lafayette

Baton Rouge

Gulfport

Undeveloped Leases

Currently Drilling

New Discoveries

Currently Producing

Lease Sale Blocks

10

Large inventory of 174 OCS Blocks (800,000 gross acres) - 55 New Blocks awarded at 2004 Central GOM Sale (Highest Bidder Overall)

Over 25 Blocks have Deep Shelf identified prospects

Additional 25% net profits interest in 17 additional OCS Blocks with 29% ownership in TEL Offshore Trust

All 3-D seismic controlled with new vintage data

Prospects located near existing production facilities

Reserve potential of 10-500 Bcfe per prospect

81% drilling success rate with 79 out of 97 GOM wells completed thru December 31, 2003

GOM rate of return (since inception thru December 31, 2003)

ROI RORProved 1.48 13.2%Proved & Probable 2.15 22.5%Proved, Probable & Possible 2.39 24.1%

Offshore Gulf of Mexico

11

Project AreaProduction

OperatorGross

Per DayMHR Net Per Day

East Cameron 73,184, 185, 344, 346, 364 345, 360, 377

RemingtonW & T Offshore

20.6 3.6

Eugene Island 148, 302, 355 397

RemingtonHunt Oil

W & T Offshore

65.9 11.3

High Island A-153 A-441

SPN ResourceRemington

.9 .08

Main Pass 160, 163, 164, 178, 263 107, 108

Magnum HunterKerr McGee

34.7 13.5

South Marsh Island 24, 35, 93 Remington 26.4 6.8

Ship Shoal 28, 38 322 358

CallonRemington

ATP

26.8 4.7

South Timbalier 250, 264,265 274, 275

Magnum HunterSpinnaker

16.5 7.0

Vermilion 61, 100, 117 84

RemingtonW & T Offshore

31.3 8.1

West Cameron 347,403,416,417,426,428,472, 488 Remington 48.4 15.0

Offshore Gulf of MexicoDiscoveries on Production since entering GOM in May 1999

70.1271.5

12

Recent Discoveries/Production Pending

4.02nd Qtr. 200440%RemingtonW. Cameron 457

5.02nd Qtr. 200450%RemingtonEugene Island 304

4.02nd Qtr. 200440%RemingtonW. Cameron 458

3.53rd Qtr. 200440%RemingtonEast Cameron 205

16.5 Total Estimated (MHR Net):

Potential DailyNet Production

(MMCFE)Estimated FirstProduction DateWI

ProductionOperator

ProjectArea

Offshore Gulf of Mexico

13

2004 Offshore Exploration / Development

354 BCFE Total Potential Gross Reserves:

106 BCFE Total Potential MHR Net Reserves:

Drilling8,900’15 BCFE15%ATPShip Shoal 358 A-2

Drilling14,100’30 BCFE25%ForestMain Pass 99

Drilling14,500’23 BCFE25%NewfieldMain Pass 234

Spud Date DepthEstimated

Gross ReservesWorkingInterestOperatorProspect

Completed8,650’20 BCFE40%RemingtonEast Cameron 205

2nd Qtr.10,800’16 BCFE50%RemingtonVermillion 241

Drilling14,000’40 BCFE25%RemingtonShip Shoal 165

Drilling17,668’60 BCFE30%Magnum HunterW. Cameron 295

2nd Qtr.15,500’100 BCFE50%Magnum HunterS. Tim. 261/262

2nd Qtr.7,730’15 BCFE40%RemingtonW. Cameron 398

2nd Qtr.7,383’15 BCFE30%RemingtonS. Marsh Island 24 A-3

2nd Qtr.7,000’10 BCFE50%RemingtonS. Marsh Island 113

Drilling12,500’30 BCFE37.5%GryphonW. Cameron 567

14

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

MC

FE

Pe r

Day

Initiated Drilling in GOM - 1999

Annual Growth Rate = 89%

Annual Growth Rate = 89%

Offshore Gulf of Mexico Production

1999 2000 2002 2002 20022002 2003 20032001 2003 2003 2004E 2004E 2004E

3,3007,600

34,650

40,236 40,958 40,63042,022

52,59956,910 56,232

25,056

57,500

65,00067,500

15

Two Drilling Rigs Working Continuously

• 44 wells drilled successfully

• 42 wells completed

• Recently acquired farm-ins on 20,000 gross mineral acres, with 30 to 50 new drilling locations identified.

Currently negotiating new farm-ins on an additional 15,000 gross mineral acres to further increase acreage position

• 2 new wells in various completion stages

• Average per well IP = 2.0 MMCFE per day (gross)

NEW MEXICO MORROW – ATOKA - STRAWN PROGRAM

Jan. 96 Jan. 97 Jan. 98 Jan. 99 Jan. 00 Jan. 01 Jan. 02 Jan. 03 Dec. 03

0

10,000

20,000

30,000

40,000

50,000

60,000

GR

OSS

GA

S (M

CFP

D)

16

10,000

12,500

15,000

17,500

20,000

22,500

25,000

27,500

30,000

32,500

35,000

37,500

40,000

42,500

45,000

47,500

50,000

2000 2001 2002 2003 2004Year-EndEstimate

All Sources

Compounded Annual Growth Rate = 30%


S. E. New Mexico Gas Production

Ne

t P

rod

uc

t io

n –

Mc

fe/ D

ay

15,672

20,443

31,989

24,486

45,000

17

Onshore Inventory Locations(Including Recompletions)

ProvedDeveloped

Non-Producing*Proved

Undeveloped*Probable/Possible*

EstimatedUnbooked Total

Abell (Texas) 0 3 0 3 6

Cumberland (Oklahoma) 8 7 29 0 44

Eola-Robberson (Oklahoma) 21 2 31 20 74

Goldsmith Mash Field Area (Texas) 0 17 19 5 41

Keystone (Texas) 1 5 3 10 19

Panoma Area (Oklahoma/Texas) 0 101 42 100 243

Coal Bed Methane (New Mexico/Colorado) -- -- -- 1,000 1,000

Southeast New Mexico 33 70 62 50 215

Walnut Bend Field Area (Texas) 9 0 5 30 44

War-Wink (Texas) 42 3 10 5 60

Westbrook (Texas) 12 81 0 0 93

Other 117 169 265 250 801

Total 243 458 466 1,473 2,640

* As estimated by third party engineering firm DeGolyer and MacNaughton

18

Drilling Activity – Gross Wells Drilled

98%100% 94%

98%

84%31526Total

88%17215Development79%14311Exploration

2002 Drilling Activity ($127.0 million)

1248116

79% 296 23 Exploration 98% 95293Development

Total

88286Total52052Development36234Exploration


94%100694

69%134 9 Exploration87285Development

Total



94%

Successful Success RatioTotalP&A’d2003 Drilling Activity ($174.6 million)

1249115

68% 258 17 Exploration 99% 99198Development

Total 93%

19

Finding and Development Costs per Mcfe(All Sources – three year average)

Peer Group 2003

$0.74$0.84

$0.93

$1.10 $1.13$1.20

$1.22 $1.26$1.29$1.38 $1.38 $1.40

$1.48

$1.64

$1.85

$1.97

$2.15

$-

$0.50

$1.00

$1.50

$2.00

$2.50

Source: Company Data

Average: $ 1.35

Median: $ 1.29

20

Av

era

ge

Da

ily

Pro

du

cti

on

(M

CF

E)

74,777

194,338

91,292



Net Daily Production Growth

200,143

Mid-PointEst.

220,000

Note: Excludes net daily production lost from asset sales of 39,926 MMcfe per day over this period.

21

Gulf Coast (onshore)17 MMcfe/d

8%

Mid-Continent

44 MMcfe/d

22%

Production by Area

Permian Basin

86 MMcfe/d

42%

Gulf of Mexico57 MMcfe/d

28%

Reserves By CategoryPDP

PDNP 10%

PUD

26%

64%

Oil31%

Production By Product

Gas

69%

22

-12.8-12.2 -11.6

-10.5

-7.2-6.1

-4.3 -4.3-3.3 -3.0 -2.9

-1.5

2.5

5.06.2

10.4 10.8 11.313.1 13.5 13.6 13.8

15.816.7

17.7

21.222.1

33.4

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

CH

KP

XDN

EVC

RK

SFY

NB

LK

MG

FST

DN

RO

XY

VPI

UC

LB

RO

EI

NXY

APA

DVN TB

IE

CA

EO

GN

FXP

PPTH

XTL

MS

GY

CN

QA

PC

XTO

PE

RC

EN

TA

GE

Source: Lehman Brothers

Cash Flow Per Share (Debt Adjusted)

Five Year Annual Growth Rate

Large/Mid/Small Caps1998 - 2002

MH

R

32.4%

% Change

23

Acquisitions & Mergers

Bil

lio

n C

ub

ic F

ee

t E

qu

iva

len

t

Natural Gas Equivalents (Bcfe)

367 Bcfe 378 Bcfe

63%

37%

66%

34%

55%

45%

837 Bcfe

98% DrillingSuccess

MallonAcquisition

Prize Acquisition

History of Reserve Growth

Development & ExploitationExploration


838 Bcfe

59%

41%

93% DrillingSuccess

24

37%

82%

140%

189% 189%214%

313% 324% 329%

411%

485%

552%576%

861%

249%226%


0%

100%

200%

300%

400%

500%

600%

700%

Average: 276%

Median: 260%

Peer Group Three Year Average All Sources Reserve Replacement Ratio

(2001 – 2003)

102%

149% 164% 164% 173% 174%

216% 224%

260%264% 270%

277% 280%

436%450%

455%

627%

25

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Oil & Gas Gas Gathering, Processing and Marketing Management

($000’s)Average Annual Growth Rate = 40%

Yearly Growth in Revenues

2004E2001200019991998 2002 2003

$51,400$69,626

$127,510$152,806

$265,869

$325,014

$395,600*

* Average consensus of the ten Equity Analysts that currently follow Magnum Hunter Resources, Inc.

The Benchmark Price Consensus from these analysts for 2004 is $5.38 per Mcf and $30.76 per Barrel.

26

G & A Expenses per Mcfe Produced

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

2000 2001 2002 2003*

Total Wells/Operated Wells

Operating Efficiency Improvements

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2000 2001 2002 2003

Operated Total Wells

3,042

2,168

3,241

2,230

5,612

4,428

Per

Mcf

e P

rod

uce

d

$0.22$0.21

$0.19Compounded Annual Growth in Well Count = 22%

Compounded Annual Growth in Well Count = 22% Compounded Annual Decline in Overhead = 8%

Compounded Annual Decline in Overhead = 8%

$0.175,591

4,399

Effective Jan. 1, 2003 Magnum Hunter began expensing the fair market value of stock options pursuant to SFAS No.’s 123 and 148. For the year ended Dec. 31, 2003 Magnum Hunter recorded a non-cash compensation expense of $3 million which is reflected in 2003’s G&A total of $15.3 million. The 2003 G & A expense per Mcfe of $0.17, as reflected above, has been adjusted for the 2003 SFAS No.’s 123 and 148 non-cash charge of $3 million in order to be congruent with prior years.

*

27

G & A Costs per McfePeer Group 2003

$0.16 $0.17$0.18 $0.18 $0.18

$0.19$0.20 $0.20

$0.24$0.26 $0.27

$0.28 $0.28

$0.32$0.33

$0.34

$0.42

$-

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50


Note: Excludes non-cash charge for stock options expense

Average: $ .25

Median: $ .24

28

Condensed Balance Sheets($ in Thousands)

$ 454,385

117,974

336,411

$ 454,385

71%49%

3,232

129,466

155,000

$ 48,713

9,442

419,837

$ 25,106

Dec. 31, 2001

$ 315,612

67%37%

$ 315,612

93,416

222,196

359

140,000

51,120

$ 30,717

20,242

260,532

$ 34,838

Dec. 31, 2000

$ 304,022

$ 304,022

82%

80%

51,552

252,470

644

140,000

94,800

$ 17,026

23,115

265,195

$ 15,712

Dec. 31, 1999

$ 1,169,656

$ 128,996

125,000

429,466

135,998

61%57%

Dec. 31, 2002

$ 97,973

1,001,609

70,074

$ 1,169,656

350,196

819,460

Debt/Book Capitalization RatioDebt/Market Capitalization Ratio

TOTAL LIABILITIES &

STOCKHOLDER’S EQUITY

TOTAL LIABILITIES

Other Liabilities

Senior Debt and Convertible Notes

Bank Debt

Current Liabilities

TOTAL ASSETS

Other Assets

Net Property, Plant and Equipment

Current Assets

STOCKHOLDERS’ EQUITY

$ 1,265,892

$ 105,503

165,000

425,000

180,713

60%50%

Dec. 31, 2003

$ 100,337

1,095,883

69,672

$ 1,265,892

389,676

876,216

Magnum Hunter Senior Unsecured Convertible Notes

Issuer: Magnum Hunter Resources, Inc. ("MHR") Book-running managers: Deutsche Bank Securities, Bank of AmericaProceeds: $125 millionStatus: Senior, UnsecuredForm of registration: Rule 144A for lifeMaturity: December 15, 2023Denomination: $1,000 per bondIssue/redemption price: 100% of parCoupon (q.): 3 month LIBOR (Currently 1.11%)Yield-to-maturity (q.): 3 month LIBORInitial coupon rate: 1.17000% (Official BBA USD Libor fixing rate at 11:00 AM London time on

December 11, 2003)Conversion premium: 45.0%Reference share price: $8.41 (NYSE closing price on December 11, 2003)Conversion price: $12.19Conversion ratio: 82.0345 shares per $1,000 bond (approximate)Call feature: Unconditionally callable after year 5 Put feature: Puttable in years 5, 10, 15Conversion type: Net share settleContingent conversion:

Yes, trigger at 110%Contingent payment: NoneDividend protection: Full dividend protection for the life of the instrument via conversion

price adjustmentTrade date: December 12, 2003Settlement date: December 17, 2003Interest payment dates:

March 15, June 15, September 15 and December 15 (quarterly in arrears)First coupon date: March 15, 2004Cusip: 55972FAE4ISIN: US55972FAE43Use of proceeds: Magnum Hunter has used the net proceeds from the offering to repay

outstanding indebtedness under Magnum Hunter's revolving credit facility

30

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

$0.60

$0.65

$0.70

$0.75

$0.80

Q4 Q1 Q2 Q3 Q4 Q1

Interest Expense Per Mcfe Produced

2002 2003 2003 2003 2003 2004E

$0.74 $0.74

$0.67

$0.61$0.58

$0.55

31

Net Cash Margin Improvement

Note: Net cash margin is defined as the realized price per Mcfe less LOE, production taxes, G & A expense (recurring), and interest expense.

Cash margin as a percent of realized price per Mcfe

Realized price per Mcfe (net)

Net cash margin percent

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

0%

10%

20%

30%

40%

50%

60%

70%

Old commodity hedges gone as of December 31, 2003

Sold bulk of higher lifting cost properties

Redeemed $140 million of 10% high yield debt

Placed $125 million convertible debt at 1.11% interest rate (floating)

1st Qtr2002

2nd Qtr2002

3rd Qtr2002

4th Qtr2002

1st Qtr2003

2nd Qtr2003

3rd Qtr2003

4th Qtr2003

1st Qtr2004E

$1.22$1.45

$1.41$1.50

$1.85$1.72

$1.87 $2.01

$3.02 $2.99

$3.49$3.36

$3.63

$4.08$3.70

$3.92$3.92

$5.09

41% 42% 42%41%

45%46%

51%48%

59%

32

Panoma Gas Gathering System (100% ownership MHR)- 449 miles of pipeline- 15.5 Mmcf per day throughput

McLean Gas Processing Plant (50% ownership MHR) - Modern cryogenic gas processing plant 980 barrels per day liquids production/23.0 Mmcf/D capacity (65% utilized)

Walker Creek Processing Plant (15% ownership MHR)- Propane refrigeration plant

- 240 barrels per day liquids/12Mmcf/D capacity (35% utilized)

Madill Gas Processing Plant (50% ownership MHR) - Modern cryogenic gas processing plant and gathering system- 970 barrels per day liquids production/18Mmcf/D capacity

(78% utilized)

Elmore City Processing Plant (100% ownership MHR)- Modern cryogenic gas processing plant and gathering system- 980 barrels per day liquids production/35 Mmcf/D capacity (30% utilized)

Acquire or build new systems to complement existing production

Seeking ways to monitize this asset base and continue in operating control

Gas Gathering, Processing and Marketing Strategy

33

Financial Performance (000’s)

Note: Forward estimates for 2004 are derived from average consensus of the ten equity analysts that currently follow Magnum Hunter.

The Benchmark Price Consensus from these analysts for 2004 is $5.38 per Mcf and /$30.76 per Barrel.

1999 2000 2001 2002 2003 2004E

Revenues

$69.6

$127.5$152.8

$265.9

$325.0

$395.6

1999 2000 2001 2002 2003 2004E

Operating Profit

$15.1

$50.3 $48.1

$68.9

$92.7

$140.6

1999 2000 2001 2002 2003 2004E

EBITDA

37.2

$75.9$92.4

$155.3

$192.3

$251.2

Net Income

1999 2000 2001 2002 2003 2004E

($6.8)

$22.3

$13.5$15.5

$26.1

$61.4

34

Oil & Natural Gas Commodity Hedges

Natural Gas Price Commodity Hedges 2004 - 85 Mmcf/d at $3.76 - $5.78 per Mmbtu 2005 - 50 Mmcf/d at $4.05 - $6.32 per Mmbtu

Oil Price Commodity Hedges 2004 - Collars 5,865 BOPD at $23.87 - $29.85

per Bbl

% Hedged

OilBbls

%Hedged

GasMmcfYear

(i) Based on 2004 mid-point guidance

(ii) Based on 2004 4th quarter mid-point guidance

50 62% (i)5,86552% (i)852004 0 (ii)023% (ii)2005

35

Commodity Price Sensitivity

$0.10 increase in gas price – Earnings per share $0.05 $0.05

$1.00 increase in oil price – Earnings per share $0.03 $0.03

2004(i) 2005(ii)

Note: (i) Based upon 2004 mid-point production guidance assuming $25 per barrel oil and $4 per Mcf gas and

existing 2004 commodity hedges

(ii) Based upon 2004 mid-point production guidance assuming $25 per barrel oil and $4 per Mcf gas and

existing 2005 commodity hedges

36

(Millions) Per Share*

Proved Reserves totaling 838.4 Bcfe (6:1 conversion ratio 58.9% natural gas, $5.24 per Mcf & $30.57 per Bbl) (Before Tax Present Value Discounted @10% as of 12/31/03) $1,481.7 $19.60

Estimated Value of Gathering, Marketing, and Processing Segment Assets:7 times 2003’s Estimated EBITDA of $10.0 million

$70.0

$0.93

Book Value of Other Assets Excluding Goodwill (12/31/03) $13.2 $0.17

Undeveloped Acreage, Net (12/31/03)119,744 Domestic Onshore Acres @ $100.00 per acre350,599 Domestic Offshore Acres (100% GOM) @ $200.00 per acre

$12.0 $70.1

$0.16 $0.93

San Juan Basin New Mexico CBM Leasehold Position, 1.5 Million Acres @ $72.00 per acre $108.0 $1.43

Leasehold Option Acreage Position - Other, 6.3 Million Acres @ $3.25 per acre $20.5

$0.27

Working Capital, Net (12/31/03) ($5.2) ($0.07)Non-Current Derivative and Other Liabilities (12/31/03) ($34.2) ($0.45)

Long-Term Debt, Net (12/31/03) ($595.5) ($7.88)

NOL Carry-Forward, $70.2 Million at December 31, 2003 @ 20% of estimated market value $14.0 $0.19

Outstanding Common Stock Options @ 12/31/03 – 6,740,764 with an average strike price of $6.36 per share $42.9 $0.57

Management’s Estimated Per Share Net Asset Value as of December 31, 2003 (Unaudited) * $1,197.5

$15.85

Management’s Estimated NAV (Unaudited) NAV Trading %

Implied MHRShare Price

$15.85 55% $8.72$15.85 60% $9.51$15.85 65% $10.30$15.85 70% $11.10$15.85 80% $12.68

$15.85 90% $14.27

$15.85 100% $15.85$15.85 110% $17.44

* Based on 75.6 million fully-diluted common shares as of December 31, 2003.

Management’s Estimate ofMagnum Hunter Net Asset Value

37

0

200

400

600

800

1,000

1,200

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Avg Daily Trading Volume Market Capitalization

Compound Annual Market Capitalization Increase = 56%

Compound Annual Market Capitalization Increase = 56%

Liquidity and Market Value

$78MM

Thousands Millions

2000 2001 2002

$700

$400

$0

$100

$200

$300

$500

$600

2003

$726 MM

$547 MM

Institutional Ownership = 59% of Float as of December 31, 2003

2004

*

* As of April 12, 2004

$800

38

Equity Research Analyst Coverage

Strong Buy03/05/04Wayne AndrewsJeffrey L. MobleyPavel Molchanov

Raymond James & Associates, Inc.

Buy03/05/04Frank D. Bracken, IIILeo P. Mariani

Jefferies & Company, Inc

Underweight (Company)Neutral (Sector)

11/05/03Jeffrey W. RobertsonMichael A. Sullivan

Lehman Brothers

Outperform03/04/04David M. KhaniFrank M. Roebuck

Friedman Billings Ramsey

Buy03/04/04

John A. BaileyNeil P. BrownJeffrey S. Wyll

Deutsche Bank Securities Inc.

Neutral03/05/04John GerdesSouthwest Securities

Outperform03/05/04Ronald E. MillsKen Beers

Johnson Rice & Company L.L.C.

RecommendationReportDateAnalyst(s)Firm

Buy/Speculative12/22/03Greg McMichaelChris Pikul

A. G. Edwards & Sons, Inc.

Hold03/09/03Phil DodgeStanford Group Company

39

$100,000 invested in Magnum Hunter at December 31, 1990, when the Company went public on the Boston Stock Exchange, would be worth approximately $4.3 million today. This calculates to an annual compounded return of 33% over the past 12 years (see Note).

The Oil and Gas Journal recently ranked Magnum Hunter as the number one fastest-growing company based on growth in stockholders equity. Magnum Hunter’s stockholder equity nearly tripled last year from $118 million to $350 million.

Shareholder Return

Note: Includes the effect of $6.50 warrants issued in 2000. Shareholders received one warrant for every three shares of Magnum Hunter common stock. Assumes warrants were sold at the average closing price for the first ten trading days ($0.89 per warrant).

Also includes the effect of $15.00 warrants issued in 2002. Shareholders received one warrant for every five shares of Magnum Hunter common stock. Assumes warrants were sold at the average closing price for the first ten trading days ($1.12 per warrant).

33%

40

Diversified, long lived, and stable reserve base

Replaced 436% of last three years production at all sources finding and development cost of $1.22 per Mcfe

Large portfolio of low cost, low-risk exploitation projects located in core operating areas

Significant exploration potential with 232 OCS lease blocks in the Gulf of Mexico Shelf, 25 of which are Deep Shelf

Consistent balance sheet improvement

Experienced low cost operator with significant operating control

Three year growth in proved reserves per share of 15% compounded annually and increase in production per share of 9%

compounded annually

Management team with significant ownership interest

Investment Considerations

41

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.

Disclosure Regarding Forward-Looking Statements

42April 21, 2023

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