SOURCE: Burlington Northern Santa Fe

February 14, 2007 16:30 ET

BNSF Extends Share Repurchase Program and Modifies Share Repurchase Approach

FORT WORTH, TX -- (MARKET WIRE) -- February 14, 2007 -- Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today announced an extension of its share repurchase program and a modification to its share repurchase approach.

The Board of Directors of BNSF today authorized the extension of the current BNSF share repurchase program, adding 30 million shares to the total of 180 million shares previously authorized in equal amounts in July 1997, December 1999, April 2000, September 2000, January 2003 and December 2005. BNSF has repurchased over 165 million of its shares since the program began in 1998, reducing shares outstanding by approximately 25 percent.

Over the past few years, BNSF has used part of its financial capacity to repurchase shares while also improving its credit statistics, including its interest coverage, debt-to-cash flow and debt-to-capital ratios. These credit statistics have improved sufficiently that BNSF now intends to devote additional financial capacity to share repurchases.

"At this time, we believe our leverage and coverage ratios are at the appropriate levels. Further changes would not be in the company's best interest," said Tom Hund, BNSF's executive vice president and chief financial officer. "This difference in approach will result in a moderately higher level of debt. We are committed to maintaining a strong credit position, using discretionary cash flow for capital additions to grow the business and providing a proper return to our shareholders."

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-sulphur 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.

Contact Information

  • Contact:
    Mary Jo Keating
    (817) 867-6407