Matthew McConaughey's RV may have some nice bells and whistles (wireless Internet, a BBQ pit), but one thing it can't do is cross the Atlantic. And that was exactly what got between the beautiful couple, who announced June 2 that they had split up a month ago. Says a friend: "It was the distance—nothing more."

After meeting on the set of Sahara in 2004, McConaughey, 36, and Penélope Cruz, 32, spent time together in places from her native Madrid to his Texas stomping grounds, but too often they were a continent apart, making movies. They constantly talked on the phone, but Cruz "said it has been too hard to have a relationship when you see the other person every six weeks," says a source close to the actress. Lately Cruz has been focusing on non-U.S. films (she won a best actress award at the Cannes Film Festival for the drama Volver). "She has projects lined up until she's 50, and none of them are in America," says a pal. As for McConaughey, "he's always going to want to be in Texas," says another source. "I don't see how Penélope would fit into that in the long term."

The pair's last reunion was in early May in Alcoy, Spain, where Cruz is shooting the bullfighting drama Manolete. But with his girlfriend working 12-hour days, McConaughey spent his time getting massages, working out and going for walks by himself. Soon after, the couple decided to call it a day.

The Sexiest Man Alive is back at work on the Atlanta set of his sports drama We Are ... Marshall, tossing a football with costar Matthew Fox and getting TLC from the other girl in his life: Foxy, his Red Heeler pup. He and Cruz are "both doing fine," says a source close to them. "They're still in touch. There are no hard feelings."