UPDATE 1-Repsol says has cash flow to finance investments

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MADRID, April 15 (Reuters) - Spain's Repsol (REP.MC) has enough cash flow to finance investments, increase dividend payouts and improve its leverage ratio, the Madrid-based oil and gas company said on Friday.

The company also said in a shareholders presentation it expected to increase potential oil and gas reserves by an average of 275 million barrels of oil equivalent a year between 2011 and 2015.

Repsol reiterated it aims for accumulated annual production growth of 3-4 percent to 2015 with a reserve replacement ratio of 110 percent for the 2011-2015 period. (Reporting by Paul Day, editing by Daniel Fineren)