repsol 2ndq2011
TRANSCRIPT
0
Seco
nd Q
uart
er 2
011
Res
ults
July
201
1
WEB
CA
ST –
CO
NFE
REN
CE
CA
LLJu
ly 2
8th, 2
011
Mr.
Mig
uel M
artín
ezC
FOM
r. M
igue
l Mar
tínez
CFO
1
Dis
clai
mer
ALL
RIG
HTS
AR
E R
ES
ER
VE
D
©R
EP
SO
L Y
PF, S
.A. 2
011
Rep
solY
PF,
S.A
. is
the
excl
usiv
e ow
ner o
f thi
s do
cum
ent.
No
part
of th
is d
ocum
ent m
ay b
e re
prod
uced
(inc
ludi
ng p
hoto
copy
ing)
, sto
red,
dupl
icat
ed, c
opie
d, d
istri
bute
d or
intro
duce
d in
to a
retri
eval
sys
tem
of a
ny n
atur
e or
tran
smitt
ed in
any
form
or b
y an
y m
eans
with
out t
he p
rior w
ritte
n pe
rmis
sion
of R
epso
lYP
F, S
.A.
This
doc
umen
t doe
s no
t con
stitu
te a
n of
fer o
r inv
itatio
n to
pur
chas
e or
sub
scrib
e sh
ares
, in
acco
rdan
ce w
ith th
e pr
ovis
ions
of t
he S
pani
sh S
ecur
ities
Mar
ket L
aw (
Law
24/
1988
, of
July
28,
as
amen
ded
and
rest
ated
) and
its
impl
emen
ting
regu
latio
ns. I
n ad
ditio
n, th
is d
ocum
ent d
oes
not c
onst
itute
an
offe
r of p
urch
ase,
sal
e or
exc
hang
e, n
or a
requ
est f
or a
n of
fer
of p
urch
ase,
sal
e or
exc
hang
e of
sec
uriti
es in
any
oth
er ju
risdi
ctio
n. In
par
ticul
ar, T
his
docu
men
t doe
s no
t con
stitu
te a
n of
fer
to p
urch
ase,
sub
scrib
e, s
ale
or e
xcha
nge
of R
epso
lY
PF'
sor
YP
F S
ocie
dad
Ano
nim
a's
resp
ectiv
e or
dina
ry s
hare
s or
AD
Ss
in th
e U
nite
d S
tate
s or
oth
erw
ise.
Rep
solY
PF'
san
d Y
PF
Soc
ieda
dA
noni
ma'
sre
spec
tive
ordi
nary
sha
res
and
AD
Ss
may
not
be
sold
in th
e U
nite
d S
tate
s ab
sent
regi
stra
tion
or a
n ex
empt
ion
from
regi
stra
tion
unde
r the
US
Sec
uriti
es A
ct o
f 193
3,as
am
ende
d.
This
doc
umen
t co
ntai
ns s
tate
men
ts t
hat
Rep
sol
YP
F be
lieve
s co
nstit
ute
forw
ard-
look
ing
stat
emen
ts w
hich
may
inc
lude
sta
tem
ents
reg
ardi
ng t
he i
nten
t, be
lief,
or c
urre
nt
expe
ctat
ions
of
Rep
sol
YP
F an
d its
man
agem
ent,
incl
udin
g st
atem
ents
with
res
pect
to
trend
s af
fect
ing
Rep
sol
YP
F’s
finan
cial
con
ditio
n, f
inan
cial
rat
ios,
res
ults
of
oper
atio
ns,
busi
ness
, stra
tegy
, geo
grap
hic
conc
entra
tion,
pro
duct
ion
volu
me
and
rese
rves
, cap
ital e
xpen
ditu
res,
cos
ts s
avin
gs, i
nves
tmen
ts a
nd d
ivid
end
payo
ut p
olic
ies.
The
se fo
rwar
d-lo
okin
g st
atem
ents
may
als
o in
clud
e as
sum
ptio
ns r
egar
ding
futu
re e
cono
mic
and
oth
er c
ondi
tions
, suc
h as
futu
re c
rude
oil
and
othe
r pr
ices
, ref
inin
g an
d m
arke
ting
mar
gins
and
exc
hang
e ra
tes
and
are
gene
rally
iden
tifie
d by
the
wor
ds “e
xpec
ts”,
“ant
icip
ates
”, “fo
reca
sts”
, “be
lieve
s”, e
stim
ates
”, “n
otic
es”a
nd s
imila
r exp
ress
ions
. The
se s
tate
men
ts a
re n
ot g
uara
ntee
s of
futu
re p
erfo
rman
ce, p
rices
, mar
gins
, exc
hang
e ra
tes
or o
ther
eve
nts
and
are
subj
ect t
o m
ater
ial r
isks
, unc
erta
intie
s, c
hang
es a
nd o
ther
fact
ors
whi
ch m
ay b
e be
yond
Rep
solY
PF’
sco
ntro
l or
may
be
diffi
cult
to p
redi
ct. W
ithin
thos
e ris
ks a
re th
ose
fact
ors
desc
ribed
in th
e fil
ings
mad
e by
Rep
solY
PF
and
its a
ffilia
tes
with
the
Com
isió
nN
acio
nald
el M
erca
do d
e V
alor
esin
Spa
in, t
he C
omis
ión
Nac
iona
lde
Val
ores
in A
rgen
tina,
the
Sec
uriti
es a
nd E
xcha
nge
Com
mis
sion
in th
e U
nite
d S
tate
s an
d w
ith a
ny o
ther
sup
ervi
sory
aut
horit
y of
thos
e m
arke
ts w
here
the
secu
ritie
s is
sued
by
Rep
solY
PF
and/
or it
s af
filia
tes
are
liste
d.
Rep
solY
PF
does
not
und
erta
ke to
pub
licly
upd
ate
or r
evis
e th
ese
forw
ard-
look
ing
stat
emen
ts e
ven
if ex
perie
nce
or fu
ture
cha
nges
mak
e it
clea
r th
at th
e pr
ojec
ted
perfo
rman
ce,
cond
ition
s or
eve
nts
expr
esse
d or
impl
ied
ther
ein
will
not
be
real
ized
.
The
info
rmat
ion
cont
aine
d in
the
docu
men
t has
not
bee
n ve
rifie
dor
revi
sed
by th
e A
udito
rs o
f Rep
solY
PF.
2
Age
nda
Q2
2011
Res
ults
Expl
orat
ory
Prog
ram
for 2
H 2
011
Stat
us o
f key
gro
wth
pro
ject
s
Port
folio
dev
elop
men
ts in
Q2
Fina
ncia
l Ove
rvie
w
3
Age
nda
Q2
2011
Res
ults
Expl
orat
ory
Prog
ram
for 2
H 2
011
Stat
us o
f key
gro
wth
pro
ject
s
Port
folio
dev
elop
men
ts in
Q2
Fina
ncia
l Ove
rvie
w
4
1262
963
0
400
800
1200
2Q10
2Q11
Q2
2011
Res
ults
Ove
rvie
w
485
523
0
200
400
600
2Q10
2Q11
Mill
ion
€
Lack
of p
rodu
ctio
n in
Lib
ya
Strik
es in
Arg
entin
a
CC
S A
djus
ted
Net
Inco
me
Mill
ion
€C
CS
Adj
uste
dO
pera
ting
Inco
me
5
340
296
0
100
200
300
2Q10
2Q11
Q2
2011
Res
ults
Pro
duct
ion
Mai
n Fa
ctor
s:
Unr
est i
n Li
bya
Mor
ator
ium
in G
oM
Prod
uctio
nkb
oed
6
370
293
172
(52)
(20)
(177
)
0
100
200
300
400
500
600
2Q10
Pric
e ef
fect
net
of
taxe
sV
olum
e ne
t of
depr
ecia
tion
Exc
hang
e ra
teO
ther
s2Q
11
Q2
2011
Res
ults
U
pstre
am A
djus
ted
Ope
ratin
g In
com
e
Mill
ion
€
7
441
129
135
256
(63)
(172
)
(214
)
0
100
200
300
400
500
600
2Q10
Stri
ke e
ffect
Pric
e in
crea
ses
in d
omes
ticm
arke
ts
Exp
ort p
rices
&in
tern
atio
nal
pric
e re
late
dpr
oduc
ts n
et o
fta
xes
Cos
tsO
ther
s2Q
11
Mill
ion
€
Q2
2011
Res
ults
Y
PF
Adj
uste
d O
pera
ting
Inco
me
8
13
53
0102030405060
2Q10
2Q11
Milli
on€
Q2
2011
Res
ults
LN
G A
djus
ted
Ope
ratin
g In
com
e
9
369
38
224
(106
)
(65)
(11)
0
100
200
300
400
2Q10
Ref
inin
gA
ctiv
ityLP
GC
hem
ical
Exc
hang
e ra
te&
oth
ers
2Q11
Q2
2011
Res
ults
Dow
nstre
am C
CS
Adj
uste
d O
pera
ting
Inco
me
Mill
ion
€
10
188
181
050100
150
200
2Q10
2Q11
Milli
on€
Q2
2011
Res
ults
G
as N
atur
al F
enos
aA
djus
ted
Ope
ratin
g In
com
e
11
Age
nda
Q2
2011
Res
ults
Expl
orat
ory
Prog
ram
for 2
H 2
011
Stat
us o
f key
gro
wth
pro
ject
s
Port
folio
dev
elop
men
ts in
Q2
Fina
ncia
l Ove
rvie
w
12
Expl
orat
ory
prog
ram
Ups
tream
•Exp
lora
tory
wel
ls:
2 in
Bra
zil (
Itabo
raia
nd T
ingu
a)
1 in
Bol
ivia
(Sar
aren
da)
2 in
C
olom
bia
(Chi
piro
nan
d Ja
ripeo
)
•App
rais
al w
ells
:
GoM
(Buc
kski
n 2)
Bra
zil
(Gua
raS
ul,
Gua
raR
DA
, P
iracu
ca4)
•Ext
ende
d w
ell t
est (
Gua
ra)
CU
RR
ENT
AC
TIVI
TY
•Exp
lora
tory
wel
ls:
Bra
zil (
Gav
ea)
•App
rais
al w
ells
:
Per
u (K
inte
roni
3)
Ven
ezue
la (P
erla
5X)
POSI
TIVE
RES
ULT
S
13
Expl
orat
ory
prog
ram
Ups
tream
–2H
201
1 A
ctiv
ity
(*) n
otco
mpl
eted
until
2012
BR
AZI
LA
LBA
CO
RA
LES
TE P
RES
ALT
(A
LBA
CO
RA
LES
TE)
AB
AR
E (B
M-S
-9)
PAO
DE
AZU
CA
R
(BM
-C-3
3)C
AR
IOC
A S
ELA
(BM
-S-9
)SA
GIT
AR
IO
(BM
-S-5
0)
CU
BA
JAG
ÜEY
GU
YAN
AJA
GU
AR
LIB
ERIA
MES
UR
AD
O
NO
RW
AY
ULV
ETA
NN
AH
EILO
WEL
L
PER
USA
GA
RI
SIER
RA
LEO
NE
MER
CU
RY
2JU
PITE
R
(*)
(*)
(*)
(*)
(*)
14
YPF
Expl
orat
ory
prog
ram
Pro
gres
s on
non
-con
vent
iona
l res
ourc
es
•Vac
aM
uerta
is a
30,
000
km2
form
atio
n w
ith
rock
thic
knes
s be
twee
n 50
to 4
00 m
ts•Y
PF´
sne
tacr
eage
incr
ease
dto
14,0
00 k
m2
from
12,0
00 k
m2
•Dur
ing
2010
:33
0 km
2 ch
osen
as
initi
alar
eato
perfo
rmpi
lots
6 ve
rtica
l wel
lsdr
illed
(initi
alflo
wra
tes
betw
een
200
/ 560
BP
D)
Oil
reco
vera
ble
reso
urce
sof
150
MB
OE
15
Expl
orac
ión
Vaca
Mue
rta 2
011
Expl
orac
ión
Vaca
Mue
rta 2
012
Dom
inio
Min
ero
YPF
Nue
vo D
omin
io M
in.
BA
ñ.x-
2
LLL
•13
expl
orat
ory
wel
ls w
ould
be
drille
d in
ord
er
to a
sses
the
pote
ntia
l of V
aca
Mue
rtain
oth
er
parts
of t
he N
euqu
ina
Bas
in
•Dur
ing
Q2
2011
a n
ew s
hale
oil
disc
over
y in
th
e V
aca
Mue
rtafo
rmat
ion
in t
he B
ajad
ade
A
ñelo
Blo
ck w
as a
nnou
nced
•3 a
dditi
onal
exp
lora
tory
wel
ls a
lread
y dr
illed
and
prep
arin
g fo
r th
e fra
ckin
gph
ase.
At l
east
9
addi
tiona
l ex
plor
atio
n w
ells
will
be d
rille
d be
fore
year
end.
YPF
Expl
orat
ory
prog
ram
2011
Pro
gram
16
Vaca
Mue
rta
Bar
nett
Hay
nesv
ille
Mar
cellu
sEa
gle
Ford
B
akke
n3-
5 M
stb/
km²
200mA
nalo
gyw
ithU
SA is
the
stre
ngth
ofth
epl
ay
(*) p
relim
inar
yda
ta
Bak
ken
Eag
le F
ord
(Oil
Leg)
Vac
a M
uerta
LL
L
Thic
knes
s30
7020
0m
STO
OIP
200,
000
114,
000
18,5
00M
Bbl
s
STO
OIP
/km
23
2343
MB
bls/
km2
EU
R3,
650
5,70
074
1M
Bbl
s
17
Age
nda
Q2
2011
Res
ults
Expl
orat
ory
Prog
ram
for 2
H 2
011
Stat
us o
f key
gro
wth
pro
ject
s
Port
folio
dev
elop
men
ts in
Q2
Fina
ncia
l Ove
rvie
w
18
Stat
us o
fkey
grow
thpr
ojec
ts(I)
CA
RTA
GEN
A
•Pro
ject
com
plet
ion:
95%
•Sta
rtup
date
: Aug
ust /
Sep
tem
ber
•Pro
ject
com
plet
ion:
95%
•Sta
rtup
date
: Oct
ober
BIL
BA
O
19
Stat
us o
fkey
grow
thpr
ojec
ts(II
)
KIN
TER
ON
I
MA
RG
AR
ITA
GU
AR
A
CA
RD
ON
IV
CA
RA
BO
BO
•Suc
cess
fula
ppra
isal
cam
paig
n•C
onst
ruct
ion
ofpr
oduc
tion
and
gas
evac
uatio
nfa
cilit
ies
unde
rway
•Firs
tgas
pro
duct
ion:
Q2
2012
•Firs
tph
ase
(pla
ntex
pans
ion
+ ho
ok-u
p of
3 ex
istin
gw
ells
) at
53%
of
proj
ectc
ompl
etio
n•S
tart
ofpr
oduc
tion:
Q2
2012
•Lau
nch
ofse
cond
phas
e(+
6 M
m3d
) by
Q4
2013
•Fie
ldde
velo
pmen
tpro
gres
sing
wel
l•F
irstO
ilex
pect
edin
Q1
2013
•Con
stru
ctio
nof
FPSO
in g
ood
prog
ress
•5 w
ells
alre
ady
drille
d•S
uppl
yof
early
prod
uctio
nfa
cilit
ies
conc
lude
d•F
irstg
as p
lann
ed: l
ate
2013
•Ear
lypr
oduc
tion
set t
o20
14•C
ontra
ctin
gth
erig
and
prog
ress
ing
with
engi
neer
ing
activ
ities
20
Age
nda
Q2
2011
Res
ults
Expl
orat
ory
Prog
ram
for 2
H 2
011
Stat
us o
f key
gro
wth
pro
ject
s
Port
folio
dev
elop
men
ts in
Q2
Fina
ncia
l Ove
rvie
w
21
3.3
3.8
7.7
10.0
830.
8
REP
SOL´
s st
ake
as o
f Dec
embe
r1s
t
Dec
embe
r sal
es(In
stitu
tiona
lin
vest
ors)
Mar
ch s
ales
(Inst
itutio
nal
inve
stor
s)
IPO
PETE
RSE
N C
all
Opt
ion
Inst
itutio
nal
inve
stor
s in
Arge
ntin
ean
mar
ket &
oth
ers
Cur
rent
sta
ke
Port
folio
dev
elop
men
tsLa
st s
tage
of t
he p
artia
l sal
e of
Rep
sol´s
stak
e in
YP
F
% o
fYP
F sh
ares
57.4
22
Port
folio
dev
elop
men
tsJo
int v
entu
re w
ith A
llian
ce O
il
•Cre
atio
nof
a Jo
int
Ven
ture
in
the
Rus
sian
Fede
ratio
n, t
hela
rges
tga
s an
doi
l pro
duce
rin
th
ew
orld
.
•Tra
nsac
tion
pend
ing
nego
tiatio
nson
final
term
s,
due
dillig
ence
, an
dre
gula
tory
and
corp
orat
eap
prov
als.
ALA
SKA
Dea
ls
alig
ned
with
st
rate
gy
of
sear
chin
g ne
w
plat
form
s fo
r fu
ture
gr
owth
w
ith
limite
d ge
ogra
phic
al a
nd fi
nanc
ial e
xpos
ure,
a lo
cal p
artn
er, a
nd e
xplo
ratio
n up
side
.
In b
oth
case
s w
e ta
rget
ed c
ash
flow
con
tribu
tion
in t
he m
ediu
m t
erm
thr
ough
vol
ume
grow
th
but f
ocus
ed o
n va
lue
crea
tion.
•Agr
eem
ent
with
“70
& 1
48 L
LC”
(affi
liate
of
Arm
stro
ng
Oil
&
Gas
In
c)
and
“GM
T E
xplo
ratio
n LL
C”
to
join
tly
carry
ou
t ex
plor
atio
n ac
tivity
in
the
bloc
ks i
n A
lask
a’s
prol
ific
Nor
th S
lope
.
•Rep
solw
ill ha
ve a
70%
wor
king
inte
rest
in th
e bl
ocks
.
RU
SSIA
23
Age
nda
Q2
2011
Res
ults
Expl
orat
ory
Prog
ram
for 2
H 2
011
Stat
us o
f key
gro
wth
pro
ject
s
Port
folio
dev
elop
men
ts in
Q2
Fina
ncia
l Ove
rvie
w
24
Dat
a Ex
Gas
Nat
ural
Net
Deb
t(ex
Pre
ferre
dsh
ares
) = G
ross
Deb
t–Fi
nanc
ialI
nves
tmen
ts–
Cas
h &
Equ
ival
ents
Bill
ion
€
Fina
ncia
l Ove
rvie
wLi
quid
ity P
ositi
on
5,0
2,0
9,7
7,3
0,0
2,0
4,0
6,0
8,0
10,0
2Q10
2Q11
Net
Deb
tLi
quid
ity
25
Cha
lleng
ing
2Q11
P&
L, a
ffect
edby
Lib
yan
cris
is a
ndA
rgen
tinea
nst
rikes
Year
2011
: tra
nsiti
onto
the
next
stag
eof
grow
th
Com
itted
in th
em
ediu
m/ l
ong
term
valu
egr
owth
Del
iver
yof
prod
uctio
nan
dpr
ofit
impr
ovem
enti
n th
ene
xtm
onth
s, b
ased
onpr
ojec
tsto
com
e on
stre
amsh
ortly
.
Con
clus
ions
26
Seco
nd Q
uart
er 2
011
Res
ults
July
201
1
WEB
CA
ST –
CO
NFE
REN
CE
CA
LLJu
ly 2
8th, 2
011
Mr.
Mig
uel M
artín
ezC
FOM
r. M
igue
l Mar
tínez
CFO