News Release

Burlington Northern Santa Fe Reports First Quarter 2007 Results and Record First Quarter Revenues

FORT WORTH, Texas, April 24, 2007:

• Freight revenues were a first-quarter record of $3.54 billion and were 5 percent higher compared with first quarter of 2006, on flat volumes.
• Quarterly earnings were $0.96 per diluted share, which included a $0.14 charge for additional environmental expenses and a technology system write-off. This compares to first-quarter 2006 earnings of $1.09 per diluted share, which included a $0.04 per share line sale gain.
• Operating income was $694 million, which included the environmental and technology charge of $81 million as well as fuel headwinds of approximately $60 million principally resulting from a decline in fuel hedge positions. This compares to first-quarter 2006 operating income of $793 million, which included $22 million from a line sale gain.

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported quarterly earnings of $0.96 per diluted share, which included a $0.14 charge for additional environmental expenses and a technology system write-off, compared with first-quarter 2006 earnings of $1.09 per diluted share, which included a $0.04 per share line sale gain.

"Improved yields from our well-balanced portfolio allowed us to achieve record first-quarter revenues despite flat volumes on a year-over-year basis. In addition, we continue to drive operating expense efficiencies and improve velocity, delivering our best on-time performance since 2004," said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer.

First-quarter 2007 freight revenues increased $175 million, or 5 percent, to $3.54 billion compared with $3.37 billion in the prior year. The 5-percent increase in revenue is primarily attributable to improved yields. Revenue for the first quarter of 2007 included fuel surcharges of approximately $380 million compared with approximately $350 million for the first quarter of 2006. The increase in fuel surcharges was driven primarily by increased participation in BNSF’s fuel surcharge program.

Coal revenues rose by $80 million, or 12 percent, to $760 million, as a result of higher rates from contract renewals, contractual price escalations, increased length of haul and fuel surcharges. Additionally, volumes increased by 2 percent as a result of strong customer demand. Consumer Products revenues increased $62 million, or 5 percent, to $1.31 billion primarily due to higher revenues in the international intermodal sector. Agricultural Products revenues were up $29 million, or 5 percent, to $626 million, predominately from volume growth in soybeans and fertilizer. Industrial Products revenues of $846 million remained relatively flat for the first quarter of 2007, as strong demand for petroleum and chemicals and plastic products were offset by weakness in the housing market.

Operating expenses for the first quarter of 2007 were $2.95 billion compared with first-quarter 2006 operating expenses of $2.67 billion. The $281 million increase in operating expenses was primarily due to the environmental and technology charge of $81 million as well as higher fuel expense reflecting both a declining hedge position and higher fuel prices.

Burlington Northern Santa Fe Corporation’s subsidiary BNSF Railway Company operates one of the largest North American rail networks, with about 32,000 route miles in 28 states and two Canadian provinces. BNSF Railway Company is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, carries the components of many of the products we depend on daily, and hauls enough low-sulfur coal to generate about ten percent of the electricity produced in the United States. BNSF Railway Company is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com.

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BNSF Headquarters
BNSF Railway Company
2650 Lou Menk Dr. 2nd Floor
P.O. Box 961057
Fort Worth, TX 76161-0057
Phone: (817) 352-1000