News Release

Burlington Northern Santa Fe Reports Second Quarter Results

FORT WORTH, Texas, July 24, 2007:

• Freight revenues were $3.74 billion for the second quarter and were 4 percent, or $144 million higher compared with the second quarter of 2006.
• Operating income was $841 million, compared to second-quarter 2006 operating income of $864 million.  The decrease in operating income reflects a $93 million increase in fuel expense principally resulting from a decline in fuel hedge benefit of $122 million.
• Quarterly earnings were $1.20 per diluted share, compared to second-quarter 2006 earnings of $1.27 per diluted share (which included a $0.04 benefit from lower income tax rates).

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported quarterly earnings of $1.20 per diluted share, compared with second-quarter 2006 earnings of $1.27 per diluted share (which included a $0.04 benefit from lower income tax rates).

"We are optimistic about the long-term outlook for the Company. We continue to work with our customers to enhance the value of our transportation services, while maintaining our focus on maximizing our return on invested capital," said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer.

Second-quarter 2007 freight revenues increased $144 million, or 4 percent, to a second-quarter record of $3.74 billion compared with $3.59 billion in the prior year. The 4-percent increase in revenue is primarily attributable to improved yields.

Coal revenues rose by $63 million, or 9 percent, to $776 million.  Coal unit volumes were relatively flat principally due to mine production and weather-related issues.  Industrial Products revenues increased by $39 million, or 4 percent, to $950 million on flat unit volumes and improved yields.  Continued strong demand for petroleum products, chemicals and plastic products was offset by a decline in building and construction products as a result of weakness in the housing market.  Agricultural Products revenues were up $48 million, or 9 percent, to $610 million, predominately from revenue growth in ethanol, fertilizer, soybeans and bulk foods.  Consumer Products revenues of $1.40 billion were relatively flat for the second quarter of 2007 on a 7-percent reduction in unit volumes.

Operating expenses for the second quarter of 2007 were $3.00 billion compared with second-quarter 2006 operating expenses of $2.84 billion.  The $165 million increase in operating expenses was primarily driven by higher fuel expenses of $93 million principally due to a declining fuel-hedge position.

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
Fort Worth, TX 76131-2830
P.O. Box 961057
Fort Worth, TX 76161-0057
Phone: (817) 352-1000