THIRD QUARTER 2011 MAIN HIGHLIGHTS AND KEY FINANCIAL FIGURES

CCS adjusted operating income in the quarter reached 1,202 M€, 5.7% higher than in the same year-ago quarter mainly because of higher oil and gas realisation prices and lower exploration costs, wider margins and larger LNG marketing volumes plus higher prices and volumes at pump stations in Argentina. This was partially offset by weaker earnings in Downstream.

CCS adjusted net income in this period amounted to 429 M€, dropping 14.5% despite higher operating income due to higher financial expenses (mainly as a result of the hedging positions) and increased minority interests following the divestments in YPF.

Upstream production in the quarter was 283 Kboepd, 18.2% less than in the same period in 2010. This reduction is mainly the result of suspended operations in Libya and the maintenance turnarounds at the bpTT fields in Trinidad and Tobago. Production in Libya has resumed. In the Gulf of Mexico, production, which was affected in previous quarters by the moratorium imposed on drilling operations in this region, is practically back to normal in this quarter, with output reaching an average of 28 Kboepd. Despite these reductions due to specific events, we maintain 300 Kboepd as our guidance for average yearly production without considering any recovery by Libya. We also maintain the production growth forecasts contemplated in our Strategic Plan unchanged.

Operating income at YPF was higher than in 3Q10 mainly on the back of higher oil product prices and volumes in the local market despite diminishing production which reached 499 Kboepd. Lower oil production in the quarter is largely attributable to social unrest in the previous quarter. The first non-conventional oil and gas development phase has been completed, with 15 vertical wells, at the Loma La Lata Norte area. This phase covers an area of 428 Km2 with 927 Mboe technically recoverable resources and, to date, approximately 5 Kboepd in the producing area.

Excluding Gas Natural, the Group's net financial debt at the end of third quarter 2011 stood at 2,909 M€, 910 M€ more than at the end of the first half of the year, and including payment of the final dividend for 2010 for the sum of 641 M€. Repsol maintains a sound financial position, reflected in a net debt/ capital employed ratio of 8.4%, excluding Gas Natural Fenosa, and 17.0% taking preference shares into account.