SOURCE: Burlington Northern Santa Fe

January 23, 2007 07:55 ET

Burlington Northern Santa Fe Reports All-Time Record EPS and Operating Income

FORT WORTH, TX -- (MARKET WIRE) -- January 23, 2007 --


--  Fourth-quarter 2006 earnings per diluted share were $1.42, or 26
    percent higher than fourth-quarter 2005 earnings per diluted share of $1.13
    
--  Fourth-quarter freight revenues increased $323 million to $3.77
    billion on a 4-percent increase in volume
    
--  Operating income was $942 million, an increase of $142 million, or 18
    percent, compared with the fourth quarter of 2005
    
--  For 2006, BNSF achieved $5.10 earnings per diluted share compared with
    $4.01 for 2005
    
--  For 2006, BNSF exceeded $1 billion in free cash flow before dividends
    and achieved $712 million in free cash flow after dividends
    
Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported record quarterly earnings of $1.42 per diluted share, a 26-percent increase over fourth-quarter 2005 earnings of $1.13 per diluted share.

"BNSF continued to have industry-leading volume growth in the fourth quarter of 2006, and we experienced our 19th consecutive quarter of year-over-year volume increases," said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. "Looking forward, we anticipate strong demand will continue for freight rail transportation, reflecting our diverse portfolio of businesses and leading to improved revenues and earnings."

Fourth-quarter 2006 freight revenues increased $323 million, or 9 percent, to $3.77 billion compared with $3.45 billion in the prior year. Revenue for the fourth quarter of 2006 included fuel surcharges of approximately $450 million compared with approximately $400 million for the fourth quarter of 2005. The increase in fuel surcharges was driven primarily by increased participation in BNSF's fuel surcharge program.

Coal revenues rose by $138 million, or 22 percent, to $775 million, as a result of record loadings of Powder River Basin coal, contractual rate escalations and a favorable mix of traffic. Agricultural Products revenues were up $53 million, or 9 percent, to $646 million, due primarily to strength in corn and fertilizer shipments. Consumer Products revenues increased $80 million, or 6 percent, to $1.46 billion reflecting double-digit increases in the international intermodal and automotive sectors, partially offset by a reduction in the domestic intermodal sector. Industrial Products revenues increased $52 million, or 6 percent, to $885 million led by double-digit revenue growth in chemicals and plastics, petroleum, and construction products. This was partially offset by softness in demand for building products.

Operating expenses for the fourth quarter of 2006 were $2.94 billion compared with fourth-quarter 2005 operating expenses of $2.75 billion. The $190 million increase in operating expenses was largely driven by a $96 million increase in fuel expense primarily reflecting a declining hedge position as well as a 4-percent increase in unit volumes. BNSF achieved record quarterly operating income of $942 million, an increase of $142 million, or 18 percent, compared with the fourth quarter of 2005. BNSF's operating ratio for the fourth quarter was 75.0 percent.

Fourth-quarter 2005 operating income includes a favorable $26 million arbitration settlement and a net $57 million loss from two commuter-related transactions. Fourth-quarter 2006 net income includes a $12 million increase over 2005 for income tax provision adjustments related to prior periods.

For 2006, BNSF achieved operating revenues of nearly $15 billion, a 15-percent increase over 2005, which includes double-digit increases in each of the Company's four business groups. This increase in revenues and the improvement in the Company's operating ratio enabled BNSF to reach $3.5 billion in operating income, an increase of 20 percent over 2005. As a result, BNSF achieved $5.10 earnings per diluted share for 2006 compared with $4.01 for 2005.

BNSF'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.

BNSF's free cash flow, as discussed above, is a non-GAAP measure and should be considered in addition to, but not as a substitute or preferable to, other information prepared in accordance with GAAP. However, the information is included herein as management believes that free cash flow provides meaningful information about BNSF's ability to generate cash flows from the operation of its business. Below is the calculation of free cash flow for 2006.

Free Cash Flow Calculation (in millions)                   2006
                                                        ---------
Net cash provided by operating activities               $   3,108
Net cash used for investing activities                     (2,086)
                                                        ---------
Free Cash Flow before Dividends                             1,022
Dividends paid                                               (310)
                                                        ---------
Free Cash Flow after Dividends                          $     712
                                                        =========
Financial information follows:
Burlington Northern Santa Fe Corporation
Consolidated Income Information*
(Dollars in millions, except per share data)


                              Three Months
                           Ended December 31,    Year Ended December 31,
                            ----------------  ----------------------------
                              2006     2005     2006      2005      2004
                            -------  -------  --------  --------  --------

Operating revenues
   Freight revenues         $ 3,769  $ 3,446  $ 14,545  $ 12,606  $ 10,742
   Other revenues               113      104       440       381       204
                            -------  -------  --------  --------  --------
      Total operating
       revenues               3,882    3,550    14,985    12,987    10,946
                            -------  -------  --------  --------  --------

Operating expenses
   Compensation and
    benefits                    994      913     3,816     3,515     3,322
   Fuel                         703      607     2,734     1,959     1,335
   Purchased services           461      440     1,906     1,713     1,424
   Depreciation and
    amortization                290      273     1,130     1,075     1,012
   Equipment rents              235      232       930       886       790
   Materials and other (a)      257      285       952       917     1,377
                            -------  -------  --------  --------  --------
      Total operating
       expenses               2,940    2,750    11,468    10,065     9,260
                            -------  -------  --------  --------  --------

Operating income                942      800     3,517     2,922     1,686
Interest expense                121      110       485       437       409
Other expense, net               10        6        40        37         4
                            -------  -------  --------  --------  --------

Income before income taxes      811      684     2,992     2,448     1,273
Income tax expense              292      254     1,105       917       482
                            -------  -------  --------  --------  --------

Net income                  $   519  $   430  $  1,887  $  1,531  $    791
                            =======  =======  ========  ========  ========

Diluted earnings per share  $  1.42  $  1.13  $   5.10  $   4.01  $   2.10
                            =======  =======  ========  ========  ========

Diluted average shares
 outstanding (in millions)    365.3    380.7     369.8     381.8     376.6
                            =======  =======  ========  ========  ========

Operating ratio (b)            75.0%    76.8%     75.8%     76.8%     84.3%
                            =======  =======  ========  ========  ========

(a) Fourth quarter of 2005 includes a net $57 million loss from two
    commuter-related transactions. 2004 includes the impact of a third-
    quarter charge for a change in estimate of asbestos and environmental
    liabilities of $465 million.
(b) Calculated as total operating expenses less other revenues divided by
    freight revenues.
*   Certain prior period amounts have been reclassified to conform with the
    current period presentation.


Burlington Northern Santa Fe Corporation
Consolidated Income Information 2006*
(Dollars in millions, except per share data)


                                                                    2006
                                1st      2nd      3rd      4th      Full
                              Quarter  Quarter  Quarter  Quarter    Year
                              -------  -------  -------  -------  --------

Operating revenues
   Freight revenues           $ 3,369  $ 3,592  $ 3,815  $ 3,769  $ 14,545
   Other revenues                  94      109      124      113       440
                              -------  -------  -------  -------  --------
      Total operating
       revenues                 3,463    3,701    3,939    3,882    14,985
                              -------  -------  -------  -------  --------

Operating expenses
   Compensation and benefits      919      928      975      994     3,816
   Fuel                           561      678      792      703     2,734
   Purchased services             464      481      500      461     1,906
   Depreciation and
    amortization                  277      279      284      290     1,130
   Equipment rents                231      232      232      235       930
   Materials and other            219      240      236      257       952
                              -------  -------  -------  -------  --------
      Total operating
       expenses                 2,671    2,838    3,019    2,940    11,468
                              -------  -------  -------  -------  --------

Operating income                  792      863      920      942     3,517
Interest expense                  121      118      125      121       485
Other expense, net                  9       11       10       10        40
                              -------  -------  -------  -------  --------

Income before income taxes        662      734      785      811     2,992
Income tax expense                252      264      297      292     1,105
                              -------  -------  -------  -------  --------

Net income                    $   410  $   470  $   488  $   519  $  1,887
                            =======  =======  ========  ========  ========

Diluted earnings per share    $  1.09  $  1.27  $  1.33  $  1.42  $   5.10
                            =======  =======  ========  ========  ========

Diluted average shares
 outstanding (in millions)      376.7    370.7    366.8    365.3     369.8
                            =======  =======  ========  ========  ========

Operating ratio (a)              76.5%    76.0%    75.9%    75.0%     75.8%
                            =======  =======  ========  ========  ========


(a) Calculated as total operating expenses less other revenues divided by
    freight revenues.
*   Certain prior period amounts have been reclassified to conform with the
    current period presentation.


Burlington Northern Santa Fe Corporation
Consolidated Income Information 2005*
(Dollars in millions, except per share data)


                                                                    2005
                                1st      2nd      3rd      4th      Full
                              Quarter  Quarter  Quarter  Quarter    Year
                              -------  -------  -------  -------  --------

Operating revenues
   Freight revenues           $ 2,899  $ 3,043  $ 3,218  $ 3,446  $ 12,606
   Other revenues                  83       95       99      104       381
                              -------  -------  -------  -------  --------
      Total operating
       revenues                 2,982    3,138    3,317    3,550    12,987
                              -------  -------  -------  -------  --------

Operating expenses
   Compensation and benefits      853      849      900      913     3,515
   Fuel                           392      461      499      607     1,959
   Purchased services             417      424      432      440     1,713
   Depreciation and
    amortization                  263      268      271      273     1,075
   Equipment rents                213      218      223      232       886
   Materials and other (a)        210      208      214      285       917
                              -------  -------  -------  -------  --------
      Total operating
       expenses                 2,348    2,428    2,539    2,750    10,065
                              -------  -------  -------  -------  --------

Operating income                  634      710      778      800     2,922
Interest expense                  109      112      106      110       437
Other expense, net                  7        8       16        6        37
                              -------  -------  -------  -------  --------

Income before income taxes        518      590      656      684     2,448
Income tax expense                197      224      242      254       917
                              -------  -------  -------  -------  --------

Net income                    $   321  $   366  $   414  $   430  $  1,531
                            =======  =======  ========  ========  ========

Diluted earnings per share    $  0.83  $  0.96  $  1.09  $  1.13  $   4.01
                            =======  =======  ========  ========  ========

Diluted average shares
 outstanding (in millions)      384.6    381.7    380.4    380.7     381.8
                            =======  =======  ========  ========  ========

Operating ratio (b)              78.1%    76.7%    75.8%    76.8%     76.8%
                            =======  =======  ========  ========  ========


(a) Fourth quarter of 2005 includes a net $57 million loss from two
    commuter-related transactions.
(b) Calculated as total operating expenses less other revenues divided by
    freight revenues.
*   Certain prior period amounts have been reclassified to conform with the
    current period presentation.


Burlington Northern Santa Fe Corporation
Consolidated Balance Sheet Information
(Dollars in millions, except per share amounts)

                                                           December 31,
                                                        ------------------
                                                          2006      2005
                                                        --------  --------
Assets
   Current assets:
   Cash and cash equivalents                            $    375  $     75
   Accounts receivable, net                                  805       678
   Materials and supplies                                    488       396
   Current portion of deferred income taxes                  345       218
   Current portion of fuel-hedging asset                      13       303
   Other current assets                                      155       210
                                                        --------  --------
      Total current assets                                 2,181     1,880

Property and equipment, net                               27,676    26,551

Other assets (a)                                           1,786     1,873
                                                        --------  --------

Total assets                                            $ 31,643  $ 30,304
                                                        ========  ========

Liabilities and stockholders' equity
   Current liabilities:
   Accounts payable and other current liabilities       $  2,853  $  2,773
   Long-term debt due within one year                        473       456
                                                        --------  --------
      Total current liabilities                            3,326     3,229

Long-term debt and commercial paper                        6,912     6,698
Deferred income taxes                                      8,216     7,916
Casualty and environmental liabilities                       830       878
Minimum pension liability (a)                                  -       417
Pension and retiree health and welfare liability (a)         604         -
Employee separation costs                                     86       107
Other liabilities (a)                                      1,273     1,551
                                                        --------  --------
      Total liabilities                                   21,247    20,796
                                                        --------  --------

Stockholders' equity:
   Common stock and additional paid-in capital             6,995     6,707
   Retained earnings                                       9,607     8,045
   Treasury stock and other                               (6,206)   (5,244)
                                                        --------  --------
      Total stockholders' equity                          10,396     9,508
                                                        --------  --------

Total liabilities and stockholders' equity              $ 31,643  $ 30,304
                                                        ========  ========

Book value per share                                    $  29.05  $  25.59
                                                        ========  ========
Common shares outstanding (in millions)                    357.9     371.6
                                                        ========  ========
Net debt to total capitalization (b)                        40.3%     42.7%
                                                        ========  ========

(a) Pursuant to Statement of Financial Accounting Standards No. 158, on
    December 31, 2006, the pension asset previously included in other
    assets, the minimum pension liability, and retiree health and welfare
    benefits previously included in other liabilities were combined into
    pension and retiree benefits.
(b) Net debt is calculated as total debt less cash and cash equivalents,
    and capitalization is calculated as the sum of net debt and total
    stockholders' equity.


Burlington Northern Santa Fe Corporation
Consolidated Cash Flow Information
(Dollars in millions)


                                 Three Months
                              Ended December 31,  Year Ended December 31,
                               ----------------  -------------------------
                                 2006     2005     2006     2005     2004
                               -------  -------  -------  -------  -------

Operating activities

   Net income                  $   519  $   430  $ 1,887  $ 1,531  $   791
   Adjustments to reconcile
    net income to net cash
    provided by operating
    activities:
      Depreciation and
       amortization                290      273    1,130    1,075    1,012
      Deferred income taxes        154        8      314      217      237
      Long-term casualty and
       environmental
       liabilities, net            (15)     (31)     (55)     (71)     477
      Other, net                  (171)     (12)    (145)     (84)    (117)
      Changes in working
       capital                      20     (155)     (23)     (59)     (23)
                               -------  -------  -------  -------  -------

Net cash provided by operating
 activities                        797      513    3,108    2,609    2,377
                               -------  -------  -------  -------  -------

Investing activities

   Capital expenditures           (465)    (505)  (2,014)  (1,750)  (1,527)
   Other, net                      169      (89)     (72)    (273)     (68)
                               -------  -------  -------  -------  -------

Net cash used for investing
 activities                       (296)    (594)  (2,086)  (2,023)  (1,595)
                               -------  -------  -------  -------  -------

Financing activities

   Dividends paid                  (90)     (75)    (310)    (267)    (231)
   Purchase of BNSF common
    stock                         (140)    (224)    (730)    (799)    (376)
   Proceeds from stock options
    exercised                       17       51      116      244      420
   Other, net                        3      130      202      (11)    (291)
                               -------  -------  -------  -------  -------

Net cash used for financing
 activities                       (210)    (118)    (722)    (833)    (478)
                               -------  -------  -------  -------  -------
Increase (decrease) in cash
 and cash equivalents              291     (199)     300     (247)     304
Cash and cash equivalents:
   Beginning of period              84      274       75      322       18
                               -------  -------  -------  -------  -------
   End of period               $   375  $    75  $   375  $    75  $   322
                               -------  -------  -------  -------  -------


Burlington Northern Santa Fe Corporation
Consolidated Cash Flow Information
(Dollars in millions)


                                                                     2006
                                 1st      2nd      3rd      4th      Full
                               Quarter  Quarter  Quarter  Quarter    Year
                               -------  -------  -------  -------  -------

Operating activities

 Net income                    $   410  $   470  $   488  $   519  $ 1,887
 Adjustments to reconcile net
  income to net cash provided
  by operating activities:
   Depreciation and
    amortization                   277      279      284      290    1,130
   Deferred income taxes            55       59       46      154      314
   Long-term casualty and
    environmental liabilities,
    net                            (18)     (21)      (1)     (15)     (55)
   Other, net                      (18)      26       18     (171)    (145)
   Changes in working capital       75      (60)     (58)      20      (23)
                               -------  -------  -------  -------  -------

Net cash provided by operating
 activities                        781      753      777      797    3,108
                               -------  -------  -------  -------  -------

Investing activities

  Capital expenditures            (455)    (569)    (525)    (465)  (2,014)
  Other, net                      (278)      52      (15)     169      (72)
                               -------  -------  -------  -------  -------

Net cash used for investing
 activities                       (733)    (517)    (540)    (296)  (2,086)
                               -------  -------  -------  -------  -------

Financing activities

  Dividends paid                   (74)     (73)     (73)     (90)    (310)
  Purchase of BNSF common
   stock                          (114)    (261)    (215)    (140)    (730)
  Proceeds from stock options
   exercised                        62       25       12       17      116
  Other, net                        91       58       50        3      202
                               -------  -------  -------  -------  -------

Net cash used for financing
 activities                        (35)    (251)    (226)    (210)    (722)
                               -------  -------  -------  -------  -------
Increase (decrease) in cash
 and cash equivalents               13      (15)      11      291      300
Cash and cash equivalents:
  Beginning of period               75       88       73       84       75
                               -------  -------  -------  -------  -------
  End of period                $    88  $    73  $    84  $   375  $   375
                               -------  -------  -------  -------  -------


Burlington Northern Santa Fe Corporation
Operating Statistics


                         Three Months Ended
                             December 31,       Year Ended December 31,
                         ------------------- ------------------------------
                             2006      2005       2006      2005     2004
                         --------- --------- ---------- --------- ---------
Cars/units (in
 thousands)                  2,677     2,581     10,637    10,024     9,536

Average revenues per
 car/unit                $   1,408 $   1,335 $    1,367 $   1,258 $   1,126

Revenue ton miles (in
 millions)                 162,502   152,234    642,417   596,575   570,688

Gross ton miles (in
 millions)                 282,499   270,970  1,119,928 1,061,108 1,011,806

RTM/GTM                       0.58      0.56       0.57      0.56      0.56

Freight revenue/thousand
 RTM                     $   23.19 $   22.64 $    22.64 $   21.13 $   18.82

Operating
 expense/thousand RTM(a) $   18.09 $   18.06 $    17.85 $   16.87 $   16.23

Freight revenue/thousand
 GTM                     $   13.34 $   12.72 $    12.99 $   11.88 $   10.62

Operating
 expense/thousand GTM(a) $   10.41 $   10.15 $    10.24 $    9.49 $    9.15

Compensation and
 benefits/thousand GTM   $    3.52 $    3.37 $     3.41 $    3.31 $    3.28

Average employees           41,745    40,218     41,532    39,524    37,617

Period end employees        41,396    40,573     41,396    40,573    38,189

Thousand RTM/average
 employee                    3,893     3,785     15,468    15,094    15,171

Thousand GTM/average
 employee                    6,767     6,738     26,965    26,847    26,898

Gallons of fuel used (in
 millions)                     378       359      1,478     1,402     1,344

Average price per gallon
 of fuel(b)              $    1.86 $    1.69 $     1.85 $    1.40 $    0.99

GTM/gallon of fuel             747       755        758       757       753

Freight train miles (in
 millions)                      44        43        173       167       165

GTM/freight train hours
 (in thousands)                124       117        123       121       129

Route Miles Operated        31,910    32,154     31,910    32,154    32,185


(a) Includes impact of third quarter 2004 charge for a change in estimate
    of asbestos and environmental liabilities of $465 million.

(b) Includes handling, taxes and hedge effect.


Burlington Northern Santa Fe Corporation
Operating Statistics

                                                                    2006
                            1st       2nd       3rd       4th       Full
                          Quarter   Quarter   Quarter   Quarter     Year
                         --------- --------- --------- --------- ----------

Cars/units (in
 thousands)                  2,521     2,679     2,760     2,677     10,637

Average revenues per
 car/unit                $   1,336 $   1,341 $   1,382 $   1,408 $    1,367

Revenue ton miles (in
 millions)                 153,011   161,831   165,073   162,502    642,417

Gross ton miles (in
 millions)                 268,180   281,931   287,318   282,499  1,119,928

RTM/GTM                       0.57      0.57      0.57      0.58       0.57

Freight revenue/thousand
 RTM                     $   22.02 $   22.20 $   23.11 $   23.19 $    22.64

Operating
 expense/thousand RTM    $   17.46 $   17.54 $   18.29 $   18.09 $    17.85

Freight revenue/thousand
 GTM                     $   12.56 $   12.74 $   13.28 $   13.34 $    12.99

Operating
 expense/thousand GTM    $    9.96 $   10.07 $   10.51 $   10.41 $    10.24

Compensation and
 benefits/thousand GTM   $    3.43 $    3.29 $    3.39 $    3.52 $     3.41

Average employees           40,673    41,847    41,864    41,745     41,532

Period end employees        41,265    42,357    41,967    41,396     41,396

Thousand RTM/average
 employee                    3,762     3,867     3,943     3,893     15,468

Thousand GTM/average
 employee                    6,594     6,737     6,863     6,767     26,965

Gallons of fuel used (in
 millions)                     360       370       370       378      1,478

Average price per gallon
 of fuel (a)             $    1.56 $    1.83 $    2.12 $    1.86 $     1.85

GTM/gallon of fuel             745       762       777       747        758

Freight train miles (in
 millions)                      42        43        44        44        173

GTM/freight train hours
 (in thousands)                121       122       123       124        123

Route Miles Operated        32,029    31,943    31,910    31,910     31,910


(a) Includes handling, taxes and hedge effect.


Burlington Northern Santa Fe Corporation
Revenue Statistics by Commodity*


                     Three Months
                   Ended December 31,        Year Ended December 31, 05-06
Revenues  (in        --------------- Percent -----------------------Percent
 millions)            2006    2005   Change   2006    2005    2004   Change
                     ------- ------- -----   ------- ------- ------- ----

Domestic Intermodal  $   674 $   688  (2.0)% $ 2,564 $ 2,372 $ 2,046  8.1%
International
 Intermodal              661     583  13.4     2,576   2,121   1,664 21.5
Automotive               128     112  14.3       473     405     315 16.8
                     ------- ------- -----   ------- ------- ------- ----
Total Consumer
 Products              1,463   1,383   5.8     5,613   4,898   4,025 14.6


Industrial Products      885     833   6.2     3,589   3,128   2,670 14.7
Coal                     775     637  21.7     2,916   2,448   2,277 19.1
Agricultural Products    646     593   8.9     2,427   2,132   1,770 13.8
                     ------- ------- -----   ------- ------- ------- ----
Total freight revenue  3,769   3,446   9.4    14,545  12,606  10,742 15.4
Other revenue            113     104   8.7       440     381     204 15.5
                     ------- ------- -----   ------- ------- ------- ----
Total revenues       $ 3,882 $ 3,550   9.4%  $14,985 $12,987 $10,946 15.4%
                     ------- ------- -----   ------- ------- ------- ----

Cars/units  (in
 thousands)
Domestic Intermodal      554     566  (2.1)%   2,151   2,110   2,033  1.9%
International
 Intermodal              793     753   5.3     3,195   2,928   2,579  9.1
Automotive                45      46  (2.2)      174     177     158 (1.7)
                     ------- ------- -----   ------- ------- ------- ----
Total Consumer
 Products              1,392   1,365   2.0     5,520   5,215   4,770  5.8

Industrial Products      402     404  (0.5)    1,686   1,655   1,650  1.9
Coal                     636     578  10.0     2,458   2,238   2,216  9.8
Agricultural Products    247     234   5.6       973     916     900  6.2
                     ------- ------- -----   ------- ------- ------- ----
Total cars/units       2,677   2,581   3.7%   10,637  10,024   9,536  6.1%
                     ------- ------- -----   ------- ------- ------- ----

Average revenue per
 car/unit
Domestic Intermodal  $ 1,217 $ 1,216   0.1%  $ 1,192 $ 1,124 $ 1,006  6.0%
International
 Intermodal              834     774   7.8       806     724     645 11.3
Automotive             2,844   2,435  16.8     2,718   2,288   1,994 18.8
                     ------- ------- -----   ------- ------- ------- ----
Total Consumer
 Products              1,051   1,013   3.8     1,017     939     844  8.3

Industrial Products    2,201   2,062   6.7     2,129   1,890   1,618 12.6
Coal                   1,219   1,102  10.6     1,186   1,094   1,028  8.4
Agricultural Products  2,615   2,534   3.2     2,494   2,328   1,967  7.1
                     ------- ------- -----   ------- ------- ------- ----
Average revenue per
 car/unit            $ 1,408 $ 1,335   5.5%  $ 1,367 $ 1,258 $ 1,126  8.7%
                     ------- ------- -----   ------- ------- ------- ----

Revenue ton miles
 (in millions)
Domestic Intermodal   13,543  13,899  (2.6)%  53,228  53,650  52,983 (0.8)%
International
 Intermodal           20,391  17,911  13.8    79,963  71,072  62,427 12.5
Automotive             1,602   1,529   4.8     6,004   5,794   4,718  3.6
                     ------- ------- -----   ------- ------- ------- ----
Total Consumer
 Products             35,536  33,339   6.6   139,195 130,516 120,128  6.6

Industrial Products   28,253  29,039  (2.7)  120,130 116,396 112,955  3.2
Coal                  70,365  62,168  13.2   271,499 242,409 236,528 12.0
Agricultural Products 28,348  27,688   2.4   111,593 107,254 101,077  4.0
                     ------- ------- -----   ------- ------- ------- ----
Total revenue ton
 miles               162,502 152,234   6.7%  642,417 596,575 570,688  7.7%
                     ------- ------- -----   ------- ------- ------- ----

Freight revenue per
 thousand ton miles
Domestic Intermodal  $ 49.77 $ 49.50   0.5%  $ 48.17 $ 44.21 $ 38.62  9.0%
International
 Intermodal            32.42   32.55  (0.4)    32.21   29.84   26.66  7.9
Automotive             79.90   73.25   9.1     78.78   69.90   66.77 12.7
                     ------- ------- -----   ------- ------- ------- ----
Total Consumer
 Products              41.17   41.48  (0.7)    40.32   37.53   33.51  7.4

Industrial Products    31.32   28.69   9.2     29.88   26.87   23.64 11.2
Coal                   11.01   10.25   7.4     10.74   10.10    9.63  6.3
Agricultural Products  22.79   21.42   6.4     21.75   19.88   17.51  9.4
                     ------- ------- -----   ------- ------- ------- ----
Freight revenue per
 thousand ton miles  $ 23.19 $ 22.64   2.4%  $ 22.64 $ 21.13 $ 18.82  7.1%
                     ------- ------- -----   ------- ------- ------- ----

* In the fourth quarter of 2006, BNSF realigned its business units. Prior
  period amounts have been reclassified to conform with the current period.





Burlington Northern Santa Fe Corporation
Revenue Statistics by Commodity*

                                                                   2006
Revenues  (in     1st         2nd           3rd          4th       Full
 millions)      Quarter     Quarter       Quarter      Quarter     Year
               ---------- ------------- ------------- ---------- ----------

Domestic
 Intermodal    $      580 $         637 $         673 $      674 $    2,564
International
 Intermodal           556           649           710        661      2,576
Automotive            114           120           111        128        473
               ---------- ------------- ------------- ---------- ----------
Total Consumer
 Products           1,250         1,406         1,494      1,463      5,613

Industrial
 Products             842           911           951        885      3,589
Coal                  680           713           748        775      2,916
Agricultural
 Products             597           562           622        646      2,427
               ---------- ------------- ------------- ---------- ----------
Total freight
 revenue            3,369         3,592         3,815      3,769     14,545
Other revenue          94           109           124        113        440
               ---------- ------------- ------------- ---------- ----------
Total revenues $    3,463 $       3,701 $       3,939 $    3,882 $   14,985
               ========== ============= ============= ========== ==========

Cars/units
 (in
 thousands)
Domestic
 Intermodal           514           532           551        554      2,151
International
 Intermodal           728           817           857        793      3,195
Automotive             44            46            39         45        174
               ---------- ------------- ------------- ---------- ----------
Total Consumer
 Products           1,286         1,395         1,447      1,392      5,520

Industrial
 Products             411           433           440        402      1,686
Coal                  582           613           627        636      2,458
Agricultural
 Products             242           238           246        247        973
               ---------- ------------- ------------- ---------- ----------
Total
 cars/units         2,521         2,679         2,760      2,677     10,637
               ========== ============= ============= ========== ==========

Average
 revenue per
 car/unit
Domestic
 Intermodal    $    1,128 $       1,197 $       1,221 $    1,217 $    1,192
International
 Intermodal           764           794           828        834        806
Automotive          2,591         2,609         2,846      2,844      2,718
               ---------- ------------- ------------- ---------- ----------
Total Consumer
 Products             972         1,008         1,032      1,051      1,017

Industrial
 Products           2,049         2,104         2,161      2,201      2,129
Coal                1,168         1,163         1,193      1,219      1,186
Agricultural
 Products           2,467         2,361         2,528      2,615      2,494
               ---------- ------------- ------------- ---------- ----------
Average
 revenue per
 car/unit      $    1,336 $       1,341 $       1,382 $    1,408 $    1,367
               ========== ============= ============= ========== ==========

Revenue ton
 miles  (in
 millions)
Domestic
 Intermodal        12,763        13,297        13,625     13,543     53,228
International
 Intermodal        18,108        20,365        21,099     20,391     79,963
Automotive          1,481         1,542         1,379      1,602      6,004
               ---------- ------------- ------------- ---------- ----------
Total Consumer
 Products          32,352        35,204        36,103     35,536    139,195

Industrial
 Products          29,774        31,167        30,936     28,253    120,130
Coal               63,049        68,151        69,934     70,365    271,499
Agricultural
 Products          27,836        27,309        28,100     28,348    111,593
               ---------- ------------- ------------- ---------- ----------
Total revenue
 ton miles        153,011       161,831       165,073    162,502    642,417
               ========== ============= ============= ========== ==========

Freight
 revenue per
 thousand ton
 miles
Domestic
 Intermodal    $    45.44 $       47.91 $       49.39 $    49.77 $    48.17
International
 Intermodal         30.70         31.87         33.65      32.42      32.21
Automotive          76.98         77.82         80.49      79.90      78.78
               ---------- ------------- ------------- ---------- ----------
Total Consumer
 Products           38.64         39.94         41.38      41.17      40.32

Industrial
 Products           28.28         29.23         30.74      31.32      29.88
Coal                10.79         10.46         10.70      11.01      10.74
Agricultural
 Products           21.45         20.58         22.14      22.79      21.75
               ---------- ------------- ------------- ---------- ----------
Freight
 revenue per
 thousand ton
 miles         $    22.02 $       22.20 $       23.11 $    23.19 $    22.64
               ========== ============= ============= ========== ==========

* In the fourth quarter of 2006, BNSF realigned its business units. Prior
  period amounts have been reclassified to conform with the current
  period.




Burlington Northern Santa Fe Corporation
Capital Expenditures and Track Maintenance

                                     Three Months
                                    Ended December
                                          31,       Year Ended December 31,
                                    --------------- -----------------------
                                     2006    2005    2006    2005    2004
                                    ------- ------- ------- ------- -------

Capital expenditures  (in millions)
 Maintenance of way
  Rail                              $    53 $    62 $   304 $   232 $   219
  Ties                                   66      60     311     284     257
  Surfacing                              44      47     214     183     159
  Other                                  94      95     397     354     359
                                    ------- ------- ------- ------- -------
   Total maintenance of way             257     264   1,226   1,053     994
 Mechanical                              41      42     152     136     114
 Information services                    19      14      65      64      73
 Other                                   39      39     121     108     107
                                    ------- ------- ------- ------- -------
   Total maintenance of business        356     359   1,564   1,361   1,288
                                    ------- ------- ------- ------- -------

New locomotive acquisitions               -       -       -       -      16

Terminal and line expansion             109     146     450     389     223
                                    ------- ------- ------- ------- -------
  Total capital expenditures        $   465 $   505 $ 2,014 $ 1,750 $ 1,527
                                    ======= ======= ======= ======= =======

Track maintenance
 Track miles of rail laid
   Maintenance of business              133     120     692     517     589
   Expansion projects                    14      33     125     162      73
                                    ------- ------- ------- ------- -------
  Total                                 147     153     817     679     662
                                    ======= ======= ======= ======= =======

 Cross ties inserted (thousands)
   Maintenance of business              531     560   2,638   2,782   2,514
   Expansion projects                    32      86     319     389     181
                                    ------- ------- ------- ------- -------
  Total                                 563     646   2,957   3,171   2,695
                                    ======= ======= ======= ======= =======

 Track resurfaced (miles)             2,181   2,541  12,588  12,790  11,450
                                    ======= ======= ======= ======= =======


Burlington Northern Santa Fe Corporation
Capital Expenditures and Track Maintenance*

                                                                     2006
                                      1st     2nd     3rd     4th    Full
                                    Quarter Quarter Quarter Quarter  Year
                                    ------- ------- ------- ------- -------

Capital expenditures  (in millions)
   Maintenance of way
      Rail                          $    55 $   101 $    95 $    53 $   304
      Ties                               64      90      91      66     311
      Surfacing                          38      65      67      44     214
      Other                              95     109      99      94     397
                                    ------- ------- ------- ------- -------
         Total maintenance of way       252     365     352     257   1,226
   Mechanical                            43      42      26      41     152
   Information services                  16      18      12      19      65
   Other                                 31      29      22      39     121
                                    ------- ------- ------- ------- -------
         Total maintenance of
          business                      342     454     412     356   1,564
                                    ------- ------- ------- ------- -------


   Terminal and line expansion          113     115     113     109     450
                                    ------- ------- ------- ------- -------
      Total capital expenditures    $   455 $   569 $   525 $   465 $ 2,014
                                    ------- ------- ------- ------- -------

Track maintenance
   Track miles of rail laid
      Maintenance of business           107     246     206     133     692
      Expansion projects                 31      29      51      14     125
                                    ------- ------- ------- ------- -------
      Total                             138     275     257     147     817
                                    ------- ------- ------- ------- -------

   Cross ties inserted (thousands)
      Maintenance of business           573     738     796     531   2,638
      Expansion projects                 92     101      94      32     319
                                    ------- ------- ------- ------- -------
      Total                             665     839     890     563   2,957
                                    ------- ------- ------- ------- -------

   Track resurfaced (miles)           2,531   4,211   3,665   2,181  12,588
                                    ------- ------- ------- ------- -------

* Certain interim period amounts have been reclassified to conform with the
  current period presentation.


Burlington Northern Santa Fe Corporation
Outstanding Debt
(Dollars in millions)
                                                            December 31,
                                                          ----------------
                                                            2006     2005
                                                          -------  -------

Notes and debentures, weighted average rate of 6.8
 percent, due 2007 to 2097*                               $ 5,364  $ 5,077

Equipment obligations, weighted average rate of 6.7
 percent, due 2007 to 2016                                    347      413

Capitalized lease obligations, weighted average rate of
 6.9 percent, due 2007 to 2023                                609      604

Mortgage bonds, weighted average rate of 5.7 percent, due
 2007 to 2047                                                 106      384

Financing obligations, weighted average rate of 6.3
 percent, due 2013 to 2028                                    153      153

Commercial paper, 5.4 percent, variable                       846      563

Unamortized discount and other, net                           (40)     (40)
                                                          -------  -------

     Total outstanding debt                                 7,385    7,154

Less:  current portion of long-term debt                     (473)    (456)
                                                          -------  -------

     Long-term debt                                       $ 6,912  $ 6,698
                                                          =======  =======

* Notes and debentures include a fair value adjustment decrease for hedges
  of $6 million and less than $1 million at December 31, 2006 and 2005,
  respectively.

Contact Information

  • Investor Contact:
    Marsha Morgan
    (817) 352-6452

    Media Contact:
    Richard Russack
    (817) 867-6425