Debt Rating Rating Action Trend Issuer Rating BBB (low) New Rating Stable

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1 Rating Report Repsol, S.A. Rating Ravikanth Rai, CFA, FRM Victor Vallance, CFA Debt Rating Rating Action Trend Issuer Rating BBB (low) New Rating Stable Note: This rating is based on publicly available information. Rating Update On September 16, 2016, DBRS Limited (DBRS) assigned an Issuer Rating of BBB (low) with a Stable trend to Repsol, S.A. (Repsol or the Company). The rating is supported by the Company s significant size, integrated operations, geographic diversification and high-quality downstream assets with a dominant presence in the Spanish downstream market. The key challenges include a relatively higher operating cost base at its upstream business, exposure to political risks and realizing envisaged synergies from its acquisition of Talisman Energy Inc. (Talisman). Although the acquisition has almost doubled the Company s production and increased its exposure to geographical areas with greater political stability, the timing of the acquisition has coincided with a weakening price environment, leading to a weakened financial profile. DBRS notes that Repsol s strong presence in the downstream segment has partially offset the impact of deteriorating cash flow from the upstream segment. However, it is still not sufficient to substantially lift the Company s weak key credit metrics. Repsol has undertaken several measures to improve its balance sheet subsequent to the acquisition of Talisman, including the reduction of operating and capital costs, the sale of non-core assets and a reduction in dividends. These measures, along with the strong performance from its downstream segment, have led to improvements in its lease-adjusted debt-to-capital and lease-adjusted debt-to-cash flow ratios for the last 12 months ended June 30, However, overall, the ratios (including intercompany debt) continue to remain weak. Repsol expects to raise an additional EUR 700 million in the second half of 2016 by concluding the ongoing asset sale transactions. In addition, Repsol has recently concluded the transaction to sell 10% of Gas Natural SDG, S.A. (GNF; post-sale, Repsol holds 20%) for a cash consideration of EUR 1,901 million. Repsol s liquidity profile is deemed to be adequate with available liquidity of EUR 6,659 million as at June 30, 2016, which includes undrawn credit facilities and cash and cash equivalents of EUR 2,225 million. The Stable trend reflects DBRS s view that the proceeds from dispositions coupled with cash flow from operations (after adjusting for cash flow from the disposed assets) should be sufficient to fund Repsol s capital and dividend commitments through 2017 and possibly result in a reduction in Repsol s indebtedness. However, in the absence of a sustained improvement in oil and gas prices, the Company s key credit metrics are expected to remain weak. Should oil and gas prices weaken even more, the Company s credit metrics are likely to come under further pressure, which could trigger a negative rating action by DBRS. Conversely, if the Company is able to materially improve its key credit metrics, a rating upgrade is possible. Financial Information Repsol, S.A. 6 mos. ending Jun mos. ending Jun mos. ending Dec. 31 ( millions, where applicable) Lease-adjusted debt / capital 41.0% 41.1% 41.0% 41.9% 33.6% 38.4% 46.4% Lease-adjusted debt / cash flow (times) Lease-adjusted EBIT interest coverage (times) Cash flow from operations 1,725 1,353 3,170 2,798 1,607 2,250 3,755 Issuer Description Repsol is a large and highly integrated oil and gas company with a presence in 41 countries around the world. Repsol s upstream business is concentrated in North America, South America and Asia, while the downstream business is primarily based in Europe. Additionally, Repsol has a 20% equity interest in GNF, which generates electricity and distributes both electricity and natural gas in Spain.

2 Rating Report Repsol, S.A. DBRS.COM 2 Rating Considerations Strengths 1. Large size and integrated operations Repsol has almost doubled its production capacity to approximately 700 thousand barrels of oil equivalent per day (mboe/d) subsequent to the Talisman acquisition. Repsol also has a stronger focus on downstream operations relative to its peers with a refining capacity of 998 thousand barrels per day (mbbl/d), which is well in excess of its liquids production. 2. Geographical and product diversification Repsol has a presence in 41 countries with liquids accounting for 36% of production. Repsol s asset portfolio includes both conventional and non-conventional assets with a product range that includes light oil, heavy oil, natural gas and natural gas liquids. 3. High-quality downstream assets Repsol s refineries in Spain have the capacity to produce higher quantities of light products and have higher refining margins compared with its European peers. The refineries are also interconnected, are capable of processing heavy oil and have good access to logistical infrastructure. 4. Strong dividends from its equity stake in GNF Dividends from Repsol s equity stake in GNF have been a consistent source of cash flow for the Company. GNF generated 71% of its 2015 EBITDA of EUR 5.3 billion from regulated business, thereby increasing the stability of the dividends. The stake also provides Repsol with financial flexibility, as the Company has recently disposed of 10% of GNF for a consideration of EUR 1,901 million, with the proceeds most likely to be used to reduce debt. Challenges 1. Relatively higher operating cost base for its upstream business Repsol s upstream business needs an average crude oil price of approximately USD per barrel to achieve free cash flow break-even, which is higher relative to its peers as well as standalone exploration and production companies. 2. Presence in countries with higher political risk Although Repsol s global presence provides it with diversification, it also exposes the Company to political risks, especially in Latin America and Africa. Repsol had its Argentinian assets expropriated by the local government in 2012, and although Repsol did receive compensation in 2014, the resulting uncertainty had a negative impact on the Company. 3. Realizing synergies from the Talisman acquisition The Talisman assets have higher operating costs relative to Repsol s other upstream assets, and given the current pricing environment, Repsol will have to realize greater synergies to maintain profitability at its upstream business. 4. Weakened credit metrics Repsol s key credit metrics have weakened as a result of the additional debt raised for the acquisition of Talisman and the concurrent reduction in oil and gas prices. Repsol has undertaken various measures to improve its metrics, and although improving, the key credit metrics are expected to continue to remain weak given the prevailing oil and gas prices.

3 Rating Report Repsol, S.A. DBRS.COM 3 Earnings and Outlook Repsol, S.A. 6 mos. ending Jun mos. ending Jun mos. ending Dec. 31 ( millions, where applicable) EBITDA 1 1,467 1,614 2,302 2,449 1,728 2,664 6,099 EBIT (36) ,312 3,915 Net income, core (387) (496) ,312 Net income, reported 639 1,053 (1,641) (1,227) 1, ,060 Return on equity 4.1% 3.3% -1.2% -1.7% 2.2% 3.3% 4.8% Selected Upstream Operating Statistics Net Daily Production Natural gas (mmcf/d) 2,554 1,531 1,237 1,162 1,067 1,061 Liquids production (mbbl/d) Total production (mboe/d) Liquids to total production (%) 35.6% 38.1% 37.0% 37.9% 40.2% 42.8% Average Realized Pricing Crude oil (USD/bbl) Natural gas (USD/mcf) Total oil equivalent (USD/mboe) Selected Downstream Operating Statistics Refining capacity (mbbl/d) Refinery utilization (%) 80% 84% 87% 79% 76% 74% Refining margin indicator (USD/barrel) Number of service stations 4,724 4,698 4,716 4,649 4,604 4,549 Adjusted Net Income 2 Upstream 63 (238) (608) (909) na Downstream ,111 2,150 1, na GNF na Corporation and adjustments 3 (275) 278 (387) 166 (335) (574) na Total 917 1,240 1,537 1,860 1,707 1,343 na 1 EBITDA in 2012 was materially higher primarily because of proportional consolidation of interest in joint ventures. 2 As reported by the Company, adjusted net income includes recurring income from continuing operations at replacement cost after tax and before joint arrangement reclassifications. 3 Higher in H and 2015 because of the exchange rate Summary Repsol s EBITDA increased in 2015, as lower profitability from the upstream segment on account of the weak pricing environment for oil and natural gas was offset by significantly strong earnings in the downstream segment. The refining margin was higher as a result of lower energy costs, strengthening product spreads and the wider spreads between heavy and light crude oil. Core earnings (before non-recurring items) decreased in 2015 because of the higher depreciation expense arising as a consequence of the Talisman acquisition. Reported net income was also substantially lower, as Repsol has recognized impairment charges of EUR 4,010 million primarily in its upstream segment resulting from the prevailing low crude oil and natural gas prices Summary/Outlook Repsol s EBITDA decreased in the first half of 2016 because of lower earnings from the downstream segment, as refining margins were lower during the period as a result of spread weakness and planned refinery turnaround. However, the impact was partially offset by measures undertaken by the Company to reduce its operating costs in its upstream segment. DBRS expects the pricing environment for crude oil and natural gas to remain weak for the remainder of the year, and as a result, the Company s upstream earnings in 2016 are expected to be weak, although offset by stronger profitability in the downstream segment. However, earnings are expected to be higher relative to 2015, as the various cost-efficiency measures undertaken by the Company, especially in the upstream segment, begin to take effect. Repsol expects to generate pre-tax savings of EUR 1.2 billion in 2016 from its efficiency and synergy program. Repsol is also expected to benefit from increased production because of the Talisman acquisition, as production guidance for 2016 is 700 mboe/d, which is significantly higher than the 559 mboe/d achieved in 2015.

4 Rating Report Repsol, S.A. DBRS.COM 4 Netback Analysis Repsol, S.A. For the year ended Dec. 31 Netbacks ( per boe) Net revenue Production and operating expenses (14.25) (9.49) (10.27) (10.72) EBITDEA netback Depreciation and depletion (25.18) (12.24) (7.15) (7.16) Exploration expense (3.85) (5.68) (4.90) (4.53) EBIT netback (19.75) Net production (MMboe) Summary EBITDEA netback (EBITDA but adding back exploration costs) was lower in 2015 as a result of the weaker pricing environment. Production and operating expenses were also higher in 2015, as the assets of Talisman, which was acquired in 2015, had historically higher operating costs relative to the Company s existing assets. EBIT netback was also lower because of lower prices, higher depreciation and depletion expense from the Talisman acquisition Outlook DBRS expects the EBITDEA and EBIT netbacks to come under pressure in 2016 because of the continued weak pricing environment. However, production and operating expenses are expected to trend lower as a result of efficiency measures undertaken by the Company. Repsol is also expected to reduce its exploration expense significantly as it deploys most of its budgeted capital toward development. Repsol has reduced its exploration budget to USD 0.4 billion in 2016 from USD 1.0 billion in DBRS also expects production to remain flat at approximately 700 mboe/d over the next two years.

5 Rating Report Repsol, S.A. DBRS.COM 5 Financial Profile Repsol, S.A. 6 mos. ending Jun mos. ending Jun mos. ending Dec. 31 ( millions, where applicable) Net income, core (387) (496) ,312 Depreciation, depletion and amortization 1,158 1,360 2,786 2,988 1,796 1,520 2,499 Deferred income taxes and other (36) (501) (807) (175) (56) Cash flow from operations 1,725 1,353 3,170 2,798 1,607 2,250 3,755 Dividends (271) (245) (514) (488) (1,712) (470) (947) Capital expenditures (1,001) (1,331) (2,575) (2,905) (2,606) (1,992) (3,409) Cash flow, free, before changes in w/c 453 (223) 81 (595) (2,711) (212) (601) Changes in non-cash work. cap. items (520) (450) 1,300 1, (275) 624 Cash flow, free (67) (673) 1, (1,745) (487) 23 Acquisitions and long-term investments (581) (8,545) (1,277) (9,241) (1,594) (343) (483) Dispositions 840 1,825 2,287 3,272 4, ,003 Net equity issuances (repurchases) (49) 1,024 (212) 861 (82) 1,014 1,388 Net debt issuances (repayment) (274) 2,576 (1,595) 1,255 (3,184) (1,126) 714 Other (92) 1,247 (451) , Change in cash (223) (2,546) 133 (2,190) (1,078) 1,608 3,226 Debt, total 18,590 20,564 18,590 19,251 13,066 15,610 21,763 Cash and equivalents 2,225 2,092 2,225 2,448 4,638 5,716 5,903 Net debt / capital 36.2% 37.1% 36.2% 36.9% 23.0% 26.5% 36.6% Debt / capital 39.2% 39.7% 39.2% 40.2% 31.7% 36.3% 44.2% Lease-adjusted debt / capital 41.0% 41.1% 41.0% 41.9% 33.6% 38.4% 46.4% Net debt / cash flow (times) Debt / cash flow (times) Lease-adjusted debt / cash flow (times) Lease-adjusted EBIT interest coverage (times) Summary Repsol generated higher cash flow from operations in 2015 despite lower crude oil and natural gas prices, as the weakness in the upstream segment was offset by the increased cash generated in the downstream segment and lower income tax payments. Free cash flow (after capital expenditures (capex) and dividends) deficit in 2015 was lower, as free cash flow (after capex and dividends) in 2014 was also affected by the one-time extraordinary dividend of EUR 1,325 million. In 2014 Repsol collected USD 4,997 million from the sale of government bonds received as compensation from the Republic of Argentina (rated B with a Stable trend by DBRS) for the expropriation of Repsol s shares in YPF S.A. and YPF Gas S.A. in Repsol s total debt increased in 2015 primarily because of the debt assumed as part of the Talisman acquisition. Consequently, Repsol s lease-adjusted debt-to-capital ratio weakened in Summary/Outlook Repsol generated a free cash flow (after capex and dividends) surplus in the first half of 2016, as the Company has implemented measures to improve the cost structure of its upstream business and received higher dividends income from GNF. However, given that the Company has budgeted capex of EUR 3,900 million and continued dividends for 2016 in a pricing environment that continues to be weak, DBRS expects Repsol to generate a free cash flow (after capex and dividends) deficit of approximately EUR 1.0 billion in Repsol raised EUR 841 million in the first half of 2016 from dispositions, primarily from the sale of its piped liquid petroleum gas (LPG) business in Spain, LPG business in Peru and offshore wind power business in the United Kingdom. Repsol expects to raise an additional EUR 700 million in the second half of 2016 from dispositions. In addition, Repsol has also received proceeds of approximately EUR 1,901 million from the sale of part of its stake in GNF. DBRS expects that the proceeds from dispositions coupled with cash flow from operations (after adjusting for cash flow from the disposed assets) should be sufficient to fund Repsol s capital and dividend commitments through 2017 and also result in a reduction in total debt and the consequent improvement in credit metrics.

6 Rating Report Repsol, S.A. DBRS.COM 6 Debt and Liquidity DBRS has assigned an equity weighting of 50% to the existing hybrid instruments issued by the Company. Please see DBRS Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers for further detail. DBRS has also included inter-company debt and financial leases as part of total debt. Repsol, S.A. Debt maturities ( millions, as at June 30, 2016) Total Debt maturities 1 2,064 2,602 1,947 1,675 2,166 3,810 14,264 % of total 14% 18% 14% 12% 15% 27% 100% 1 Does not match the total debt figure as it excludes hybrids, financial leases and intercompany loans but includes exchange rate derivatives and interest. Repsol has adequate liquidity to cover its medium-term obligations. Repsol had available liquidity of EUR 6,659 million as at June 30, 2016, which includes undrawn credit facilities and cash and cash equivalents of EUR 2,225 million. Additionally, Repsol is expected to continue to dispose of non-core assets, which is expected to provide additional liquidity over the next two years. Repsol s provisions for dismantling oil and gas production facilities and other contingencies increased in 2015, with estimated payments of EUR 4,174 million over the next five years. The corresponding amount in 2014 was EUR 1,144 million. The increase is primarily a result of the acquisition of Talisman and, in particular, the decommissioning obligations related to Talisman s joint venture in the North Sea with China Petrochemical Corporation. DBRS expects the Company to have continued access to the capital markets and adequate liquidity over the next two years to meet its obligations even if the pricing environment continues to remain weak. Reserves Repsol, S.A. For the year ended Dec. 31 Net Proved Reserves (MMboe, where applicable) Opening balance 1,537 1,514 1,292 2,179 Revisions of previous estimates Improved recovery Extensions and discoveries Purchases of minerals in place Sales of minerals in place (22) (0) (14) (1,023) Production (203) (130) (126) (122) Closing balance 2,371 1,537 1,514 1,292 Liquids to total reserves 25% 29% 28% 33% Developed reserves to total 60% 43% 39% 49% Proved reserve life index (years) Proved developed reserve life index (years) Annual production replaced 510% 118% 275% -629% Annual production replaced internally 160% 119% 286% 193% F&D costs ( /boe) 1, Reserve replacement costs ( /boe) 1, Reserve recycle ratio (times) Three-year average. 2 Excludes acquisitions and divestitures. 3 Includes acquisitions and excludes divestitures. 4 EBITDEA netback / three-year average reserve replacement costs.

7 Rating Report Repsol, S.A. DBRS.COM 7 Reserves (CONTINUED) Net Proved Reserves by Region For the year ended Dec. 31 (MMboe) Europe Venezuela Peru United States Rest of the Americas Africa Asia Total proved reserves 2,371 1,537 1,514 1,292 Proved reserve life index (years) Europe Proved reserve life index (years) Venezuela Proved reserve life index (years) Peru Proved reserve life index (years) United States Proved reserve life index (years) Rest of the Americas Proved reserve life index (years) Africa Proved reserve life index (years) Asia Summary Repsol s proved reserves increased substantially in 2015 because of the Talisman acquisition. The acquisition also improved the risk profile of the Company s reserves, as a majority of Talisman s assets are located in developed countries with lower political risk. Repsol s proved reserve life index is 11.7 years; however, it is 9.2 years based on the average daily production in the first half of The reserve recycle ratio reduced significantly in 2015 as a result of the weak pricing environment and the higher reserve replacement costs arising from the Talisman acquisition.

8 Rating Report Repsol, S.A. DBRS.COM 8 Business Profile Repsol is an integrated energy company with activities divided Downstream activities, which include refining, marketing, into two business areas: trading and transportation of crude oil; sale of LPG; and sale, Upstream activities, which include exploration, development transportation and regasification of natural gas and liquefied and production of crude oil and natural gas reserves. natural gas. Upstream LATIN AMERICA Production 2016: ~304 mboe Operatorship:~20% Gas production [2016]: 70% SOUTHEAST ASIA: Production 2016: ~102 mboe Operatorship: ~37% Gas production [2016]: 77% NORTH AMERICA: Production 2016: ~187 mboe Operatorship: ~79% Gas production [2016]: 71% MAIN FIGURES Current production: ~700 mboe 1P reserves:* 2,371 MMboe Note: Europe, Africa and Brazil: ~112 mboe/day * As at December 31, Repsol s upstream assets are primarily in North America Repsol had 38 main productive and underdevelopment assets (Canada and the United States), Latin America (Trinidad and as at December 31, Repsol is the operator for a majority of Tobago, Venezuela, Peru, Brazil and Colombia) and Southeast these, which include both onshore and offshore assets. Asia (Malaysia and Indonesia). Repsol s reserves are primarily natural gas (75%) and include both conventional and unconventional reserves. Corporate Finance: Energy September 23, 2016

9 Rating Report Repsol, S.A. DBRS.COM 9 Business Profile (CONTINUED) Country Production (%) 1 Main Blocks % Repsol Productive(P)/Under Development(D) Operated(O)/Not Operated(NO) Onshore/ Offshore Europe Norway 4% Brage, Brynhildg 10% to 33.84% P NO Offshore Norway Gyda, Varg 31% to 100% P O Offshore United kingdom RSRUK 51% P O Offshore Latin America Trinidad & Tobago 52% BP TT 30.0% P NO Offshore Trinidad & Tobago TSP 70.0% P O Offshore Brazil BM-S-9 (Sapinhoá) 15.0% P NO Offshore Brazil BM-S-9 (Lapa) 15.0% P/D NO Offshore Brazil Albacora Leste 6.0% P NO Offshore Bolivia Margarita - Huacaya 37.5% P O Onshore Bolivia Sábalo 24.5% P NO Onshore Bolivia San Alberto 24.5% P NO Onshore Colombia Equion 49.0% P O Onshore Colombia CPO-9 Akacias 45.0% NO Onshore Colombia Cravo Norte 5.6% P NO Onshore Peru Block 56 (Camisea) 10.0% P NO Onshore Peru Block 88 (Camisea) 10.0% P NO Onshore Peru Block 57 (Kinteroni & Sagari) 53.8% P/D O Onshore Venezuela Cardón IV (Perla) 50.0% P/D O Onshore Venezuela Quiriquire (Gas) 60.0% P O Onshore Venezuela Barua Motatan 40.0% P O Onshore Venezuela Carabobo 11.0% P/D O Onshore North America United States 27% Shenzi 28.0% P NO Offshore United States Midcontinent 9.3% P NO Onshore United States Eagle Ford 37.0% P NO Onshore United States Marcellus 83.8% P O Onshore Canada Greater Edson 64% to 78% P O Onshore Canada Chauvin 65% to 69% P O Onshore Canada Duvernay 88% to 100% P O Onshore Africa Algeria 2% Tin Fouyé Tabenkor (TFT) 30.0% P O Onshore Algeria Reggane 29.3% D O Onshore Asia Russia 15% SK 49.0% P O Onshore Russia SNO 49.0% P O Onshore Russia TNO 49.0% P O Onshore Indonesia Corridor 36.0% P O Offshore Malaysia PM3 35% to 41.44% P NO Offshore Malaysia Kinabalu 60.0% P O Offshore Vietnam Block 15-2/01 (HST / HSD) 60.0% P O Offshore Vietnam Block 07/03 (CRD / Red Emperor) 46.8% D O Offshore 1 Based on production achieved in the first half of 2016.

10 Rating Report Repsol, S.A. DBRS.COM 10 Business Profile (CONTINUED) Downstream Repsol s downstream operations are primarily based in Europe. The Company owns and operates refineries in Spain and Peru. Repsol also owns three petrochemical complexes located in Spain and Portugal. Repsol has a large network of service stations primarily spread across Spain, Italy and Portugal. Repsol also distributes LPG in Spain, Portugal, Ecuador and Peru. Repsol also has 20% equity in GNF, which generates electricity and distributes both electricity and natural gas in Spain. Repsol, S.A. Downstream Operations 12 mos. ending Dec. 31 Refining capacity (mbbl/d) Spain Cartagena A Coruña Puertollano Tarragona Bilbao Peru La Pampilla Total Repsol Number of Service Stations Europe 4,310 4,275 4,250 4,216 Rest of the world Total Repsol 4,716 4,649 4,604 4,549 Chemicals Production Capacity (thousands of tons) Basic petrochemicals 2,603 2,808 2,808 2,808 Derivative petrochemicals 2,235 2,491 2,491 2,942 Sales Volume LPG by product (thousands of tons) Bottles 1,286 1,281 1,354 1,367 Bulk, piped and other 974 1,225 1,110 1,170 Total Repsol 2,260 2,506 2,464 2,537

11 Rating Report Repsol, S.A. DBRS.COM 11 Repsol, S.A. Jun. 30 Dec. 31 Jun. 30 Dec. 31 Balance Sheet ( millions) Assets Liabilities and Equity Cash and equivalents 2,225 2,448 4,638 5,716 S.T. borrowings Accounts receivable 4,068 4,667 5,053 4,549 Accounts payable 1,925 1,799 2,350 2,588 Inventories 3,198 2,853 3,931 4,938 Current portion L.T.D. 6,580 7,211 4,128 5,934 Prepaid expenses and other 2,545 2,783 3,419 2,573 Deferred tax Other current liab. 4,558 5,467 3,765 4,854 Total current assets 12,036 12,751 17,041 17,776 Total current liab. 13,063 14,477 10,243 13,376 Net fixed assets 27,259 28,437 17,141 16,026 Long-term debt 1 12,010 12,040 8,938 9,676 Future income tax assets 4,786 4,689 3,967 4,079 Deferred income taxes 1,524 1,554 1,684 1,866 Goodwill and intangibles 5,042 4,522 1,859 1,729 Other L.T. liab. 6,702 6,326 2,870 3,179 Investments and others 12,995 12,678 11,881 15,937 Shareholders equity 1 28,820 28,681 28,154 27,450 Total assets 62,118 63,077 51,889 55,547 Total liab. and SE 62,118 63,077 51,889 55,547 1 Includes adjustments for hybrids which have been assigned equity weightage of 50%. Repsol, S.A. 6 mos. ending Jun mos. ending Jun mos. ending Dec. 31 Balance Sheet, Liquidity and Capital Ratios Current ratio Net debt / capital 36.2% 37.1% 36.2% 36.9% 23.0% 26.5% 36.6% Debt / capital 39.2% 39.7% 39.2% 40.2% 31.7% 36.3% 44.2% Lease-adjusted debt / capital 41.0% 41.1% 41.0% 41.9% 33.6% 38.4% 46.4% Net debt / cash flow Debt / cash flow Lease-adjusted debt / cash flow (Cash flow dividends) / capex (0.04) Dividend / cash flow 15.7% 18.1% 16.2% 17.4% 106.5% 20.9% 25.2% Coverage Ratios (times) EBIT interest coverage (0.05) EBITDA interest coverage Fixed-charge coverage Lease-adjusted EBIT interest coverage Profitability Ratios EBITDA margin 9.0% 7.8% 6.4% 6.0% 3.7% 5.6% 10.5% EBIT margin 2.4% 2.6% -0.1% 0.3% 0.7% 2.8% 6.8% Profit margin 3.8% 2.5% -1.0% -1.1% 1.2% 1.8% 2.4% Return on common equity 4.1% 3.3% -1.2% -1.7% 2.2% 3.3% 4.8% Return on capital 1.2% 1.6% -0.1% 0.2% 0.5% 2.0% 6.0%

12 Rating Report Repsol, S.A. DBRS.COM 12 Repsol, S.A. 6 mos. ending Jun mos. ending Dec. 31 Operating Statistics Net Daily Production Natural gas (mmcf/d) 2,554 1,531 1,237 1,162 1,067 1,061 Liquids production (mbbl/d) Total production (mboe/d) Liquids to total production 35.6% 38.1% 37.0% 37.9% 40.2% 42.8% Netbacks ( /boe) Net revenue Production and operating expenses (14.25) (9.49) (10.27) (10.72) EBITDEA netback Depreciation and depletion (25.18) (12.24) (7.15) (7.16) Exploration expense (3.85) (5.68) (4.90) (4.53) EBIT netback (19.75) Reserve Data Proved reserves (MMboe) 2,371 1,537 1,514 1,292 Liquids to total reserves 25% 29% 28% 33% Developed reserves to total 60% 43% 39% 49% Proved reserve life index (years) Proved developed reserve life index (years) Annual production replaced 510% 118% 275% -629% Annual production replaced internally 160% 119% 286% 193% F&D costs ( /boe) 1, Reserve replacement costs ( /boe) 1, Reserve recycle ratio (times) Downstream Operating Statistics Refining capacity (mbbl/d) Refinery utilization (%) 80% 84% 87% 79% 76% 74% Refining margin indicator (USD/barrel) Number of service stations 4,724 4,698 4,716 4,649 4,604 4,549

13 Rating Report Repsol, S.A. DBRS.COM 13 Rating History Current Issuer Rating BBB (low) Related Research DBRS Publishes Oil & Gas Activity and Price Review: Taking a look at the fundamentals driving price and activity, June 6, DBRS Publishes Oil & Gas Credit Review: Climbing Cash Flow Deficits Buffered by Liquidity, April 14, DBRS Reviews Ratings of Oil & Gas Portfolio, January 29, DBRS Comments on the Outlook for the Oil and Gas Industry: More Financial Stress for an Industry Already Under Duress, December 22, DBRS Removes Talisman Energy Inc. Ratings from Under Review with Developing Implications, Downgrades Ratings to BBB (low), Stable, Discontinues All Ratings, December 16, Notes: All figures are in euros unless otherwise noted. For the definition of Issuer Rating, please refer to Rating Definitions under Rating Policy on Generally, Issuer Ratings apply to all senior unsecured obligations of an applicable issuer, except when an issuer has a significant or unique level of secured debt. 2016, DBRS Limited, DBRS, Inc. and DBRS Ratings Limited (collectively, DBRS). All rights reserved. The information upon which DBRS ratings and reports are based is obtained by DBRS from sources DBRS believes to be reliable. DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance. The extent of any factual investigation or independent verification depends on facts and circumstances. DBRS ratings, reports and any other information provided by DBRS are provided as is and without representation or warranty of any kind. DBRS hereby disclaims any representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability, fitness for any particular purpose or non-infringement of any of such information. In no event shall DBRS or its directors, officers, employees, independent contractors, agents and representatives (collectively, DBRS Representatives) be liable (1) for any inaccuracy, delay, loss of data, interruption in service, error or omission or for any damages resulting therefrom, or (2) for any direct, indirect, incidental, special, compensatory or consequential damages arising from any use of ratings and rating reports or arising from any error (negligent or otherwise) or other circumstance or contingency within or outside the control of DBRS or any DBRS Representative, in connection with or related to obtaining, collecting, compiling, analyzing, interpreting, communicating, publishing or delivering any such information. Ratings and other opinions issued by DBRS are, and must be construed solely as, statements of opinion and not statements of fact as to credit worthiness or recommendations to purchase, sell or hold any securities. A report providing a DBRS rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. DBRS receives compensation for its rating activities from issuers, insurers, guarantors and/or underwriters of debt securities for assigning ratings and from subscribers to its website. DBRS is not responsible for the content or operation of third party websites accessed through hypertext or other computer links and DBRS shall have no liability to any person or entity for the use of such third party websites. This publication may not be reproduced, retransmitted or distributed in any form without the prior written consent of DBRS. ALL DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AT ADDITIONAL INFORMATION REGARDING DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES AND METHODOLOGIES, ARE AVAILABLE ON