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Dear,

The upcoming newsletter contains a video in which our Chief Executive Officer,Josu  Jon  Imaz,  offers  an  overview  of  the  “new”  Repsol  after  the  closing  ofTalisman´s  transaction.  I  also  want  to  share  with  you  the main  details  of  theTalisman´s integration process.

I encourage you to take a look at it.

Enjoy our newsletter!

abautistaf.ir@repsol.com+34 917 539 454

Interview of the month

Josu Jon Imaz, offers an overview of the new Repsol after the closing ofTalisman´s transaction

Trending topics

Talisman´s integration process

Figures of the period

Consult Repsol’s first quarterly figures for 2015

FAQs

The latest Frequently Asked Questions to our IR team

 

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On the road

Consult our activities in May and June

Official Notice

Repsol guarantees that the information contained in this section is exactly the same as the forwarded to the CNMV, CNV, SEC and OTCQX

Press Releases

Consult the latest news about the Company.

Josu Jon Imaz, offers an overview of the newRepsol after the closing of Taliman´s transaction

“The Closing of the transaction took place on 8th of May. Today we

are already one single company. Talisman’s assets are part of Repsol and

consolidate within the Upstream division”

“The new Repsol has a broader portfolio with high‐quality production

assets located in politically stable countries, higher production and

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reserves, more capital employed in North America and a deeper knowledge

of unconventional production techniques”

“We have much more flexibility as a company. And since we don’t

have the mandate to grow any longer, we will focus on value generation

that will be delivered through portfolio management and synergies”

“We will continue with our current competitive dividend and our

commitment with maintain its investment grade “

“We are excited to be one company. Our challenge is cultural, is the

cultural transformation of this company to get the best of both companies

and for sure we will do”

Talisman´s integration process

We ended  the year 2014 with  the announcement of  the agreement withTalisman’s Board of Directors  to acquire  the company, and on the 8th ofMay,  after  devoting  great  efforts,  we  closed  the  transaction.  Theintegration process has occurred as expected and  it has been a smoothprocess. From the 8th of May we are working as a single company.

We  have  increased  our  portfolio  with  high­quality  production  assetslocated  in  politically  stable  countries,  the  majority  of  which  are  in  theOECD.  Our  production  has  increased  by  85%  to  656,000  barrels  of  oilequivalent  per  day,  our  proved  reserves  by  47%  to  reach  2.270  billionbarrels of oil  equivalent, and North America becomes more  important  tous.

We  will  release  combined  figures  during  the  second  quarter  resultspresentation and before  the end of  the year will present a new strategicplan  that  will  lay  out  the  foundations  for  the  expanded  Group’s  activity,with focus on value creation.

With our broader portfolio, better opportunities will be created  in order  tounlock  value  through  portfolio  management,  streamlining  capex,  andthrough the allocation of capital to the most valuable projects and assets.

Therefore,  we  have much more  flexibility  as  a  company.  And  since  wedon’t  have  the  mandate  to  grow  any  longer,  we  will  focus  on  valuegeneration  that  will  be  delivered  through  portfolio  management  andsynergies.

We  will  continue  with  our  current  competitive  dividend  and  with  ourcommitment to maintain the investment grade.

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Consult Repsol’s first quarterly figures for 2015results.

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The last Frequently Asked Questions to our IR team

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Sustainability of our downstream business?

The industry has experienced very healthy refining margins since the

slump  in  oil  prices  has  helped  cutting  energy  costs  to  run  the

refineries. Rising demand for refined products in Europe and a strong

dollar are other factors which are helping to reach such solid margins.   Repsol  is  taking advantage of  the current environment as well as of

an improved refining system thanks to the investment we carried out

in  the  period  between  2007  and  2011.  The  high  complexity  of  the

current system enables us  to  feed our  refineries with heavy crudes.

During  the  quarter, more  than  50%  of  the  crudes  processed  in  our

refineries were heavy crudes (< 27º APIs) letting us benefit from the

light­heavy  oil  differentials  whilst  obtaining  high  value­added

products. We have averaged record margins during the quarter.   During  the second quarter we are  reaching strong  refining margins,

even higher than those of the first quarter, despite oil price increases.

In contrast, plans for rationalization of capacity  in Europe remain on

track.   Even  in  a  high  crude  oil  price  scenario,  Repsol´s  Downstream

business  is  resilient  thanks  to  our  high  conversion  (top  quartile),

allowing  us  to  cope  with  more  expensive  commodity  prices  better

than  our  competitors,  as  in  this  scenario  the  light­heavy  oil

differentials  become  higher.  In  addition,  our  integrated  position  in

Iberia  allows  us  to manage  our  five  refineries  as  a  single  one  and

thus  take  advantage  of  joint  purchase  of  crudes,  exchange  of

products  between  refineries,  global  planning  optimization  and

adapting to market changes.   It  also  worth  mentioning  that  our  5  refineries  are  spread  around

Spain, allowing us to deliver our production in a very competitive way.  

Which will be Repsol´s gearing after Talismanacquisition?

After  the  integration  of  Talisman,  Repsol  will  have  a  pro  forma  net

debt  to  capital  employed  ratio  of  27%,  very  reasonable  after  such

transformational  transaction,  and  we  will  reduce  this  figure  as  we

progress with our divestment and synergies programs.  

Why are our margins in Marcellus higher than those ofother companies in the play?

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Access to gas transportation and ownership of egress (midstream) is

a  distinct  competitive  advantage  in  Marcellus.  We  own  midstream

infrastructure (pipeline gathering capacity and natural gas processing

infrastructure) and has  long­haul  transportation contracts  in place  to

move  gas  out  of  the  heavily  discounted  NE  region,  of  which  a  big

chunk  is  contracted  on  the  Tennessee  Gas  Pipeline  with  direct

access  to  better  Henry  Hub  pricing.  In  2014,  we  successfully

monetized spare capacity, which generated substantial revenues.   We have acreage held by production,  allowing us great  flexibility  in

our  capex  decisions.  As  we  are  producing  we  are  not  obliged  to

invest  in  the current prices environment, but we have  the chance  to

increase our current production very quickly as prices going up.  

Why has Repsol issued 2 B€ hybrid bond?

Repsol  has  a  full  commitment  with  its  investment  grade  and  the

maintenance  of  the  current  competitive  dividend.  After  Talisman

transaction,  in  order  to  maintain  our  investment  grade,  a  strong

balance sheet and our competitive shareholder remuneration, Repsol

committed with  the rating agencies  to  issue hybrid  instruments  for a

total amount of up to 5 B€ and achieve synergies and divestments of

2 B€.   The reasons behind choosing hybrid instruments were the advantage

of  being  non­dilutive  to  shareholders,  the  cost  efficiency  in

comparison with  equity  and  the  fact  that  rating  agencies  give  them

50%  as  equity  content,  which  facilitates  the  maintenance  of  the

investment grade.   Repsol  will  deliver  on  the  above  mentioned  commitment  acquired

with  credit  rating  agencies  with  the  issuance  of  additional  3  B€,

presumably towards year end, seeking the best market condition.    We  feel  confident  of  maintaining  our  investment  grade.  We  are

having  periodic  and  fluid  conversations  with  rating  agencies,  being

our feelings very positive as the agencies trust in our ability to comply

with all our commitments as we did in the past.  

Which is the situation in Libya and the outlook for thiscountry? Our  production  in  the  country  continues  to  be  interrupted,  due  to

security reasons, and we have no visibility on when the situation may

change. During the first quarter of  the year we had no production  in

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the country and during  the second quarter  this situation  is expected

to remain. International institutions are concentrated on resolving the

Libyan conflict and hopefully we will see a better future in the county.

Our facilities have remained in good shape throughout the conflict so

we will be able to resume operations once the situation is normalized.

Consult our activities in May and June

Having  successfully  completed  the  Talisman  acquisition,  the  IR  team  willcontinue with the communication of the transaction to investors and markets ingeneral. During May and June, the Senior Management and the head of IR willbe attending The Barclays Pan European Select Conference and Credit SuisseGlobal  Energy  Conference,  both  in  London.  Other  members  of  the  team  willalso be marketing  in NY (RBC Global Energy Conference) and Houston (TPHHotter N’ Hell Conference).

The  intention of  the  team  is  to attend also  the NIRI  conference  in Chicago  inmid­June, where we expect to listen to new practices and tendencies developedinside the IR world.

The ESG activity keeps on  following  its path. The ESG team will be attendingthe  Nomura  European  Responsible  Conference  in  London  and  the  OddoEnviroment Forum in Paris, both in June.

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Repsol guarantees  that  the  information contained  inthis section  is exactly  the same as  the  forwarded  tothe CNMV, CNV, SEC and OTCQX.

Repsol completes the acquisition of Talisman Energy Inc.

Repsol announces a new organizational structure.

Webcast presentation of 1Q2015 results.

Press release on the 2015 first quarter results.

Q1 2015 Results.

Repsol reports the expected timetable for the first paid­up capitalincrease approved by the Annual Shareholders’ Meeting held on April 30,2015 (“Repsol Flexible Dividend”).

Credit Suisse Global EnergyConferenceLondon2th June 2015

Nomura European ResponsibleConferenceLondon4th June 2015

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Consult the latest news about the Company

Repsol implements its new organization following the Talisman integration.

Repsol posts net income of 761 million euros.

Repsol makes new gas discovery in Bolivia.

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