Repsol (OTCPK:REPY.F) 2025 Conference Transcript

Repsol Investor Conference Summary Company Overview - Company: Repsol - Headquarters: Madrid, Spain - Business Verticals: Upstream, Industrial, Customer, Low-Carbon Generation - Production: Approximately 570,000 barrels of oil equivalent per day in 2024, with two-thirds gas and one-third crude oil [3][4] Core Business Insights Upstream - Proved Reserves: 1.8 billion barrels, with 75% gas and 25% liquid [3] - Strategic Focus: Targeting production of 180,000 to 200,000 barrels of oil equivalent per day from unconventional assets in the U.S. [12][13] - Investment: Peak investment of €3 billion in 2022, expected to normalize to €2 billion annually [17] - Joint Ventures: Merged with NEO Energy, projected to produce 130,000 barrels of oil equivalent per day by 2025 [15] Industrial - Refining Capacity: Six refineries with over one billion barrels of capacity per day [3] - Cash Flow Improvement: Average cash flow from operations increased by 50% from 2021 to 2023 [18] - Decarbonization Initiatives: Focus on renewable fuels and hydrogen production, including a new hydrogen plant in Cartagena [19][20] Customer - Client Base: Over 24 million clients, with 9 million digital clients [4][20] - Market Position: Fourth-largest operator in the Spanish electricity market, with a target EBITDA of €1.4 billion by 2025 [21] - Renewable Fuels: Plans to sell 100% renewable diesel at 2,000 service stations by 2027 [22] Low-Carbon Generation - Current Capacity: Over 5 gigawatts of renewable generation capacity, with a pipeline exceeding 30 gigawatts [23][24] - Investment Strategy: Focus on solar, onshore wind, and hydro technologies, with a target of 9 gigawatts by 2027 [24][25] Financial Commitments - Dividend Policy: Committed to distributing 25%-35% of cash flow from operations to shareholders, with a total cash dividend of €4.6 billion planned for 2024-2027 [6][7] - CapEx Allocation: Net CapEx of €16-€19 billion, with over 35% dedicated to low-carbon businesses [9][10] - Share Buybacks: Up to €5.4 billion planned between 2024 and 2027 [7][8] Strategic Goals - Decarbonization Commitment: First oil and gas company to commit to net-zero emissions by 2050, with interim targets for 2025, 2030, and 2040 [10][11] - Operational Efficiency: Focus on reducing break-even costs and enhancing production efficiency across all business verticals [16][18] Conclusion - Future Outlook: Repsol aims to be a leading player in the energy transition, balancing profitability with sustainability, and maintaining a strong commitment to shareholder returns [26][29]