dex991.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

Investor Contact: Marsha Morgan

(817) 352-6452

Media Contact: Mary Jo Keating

(817) 867-6407

Burlington Northern Santa Fe Reports

Second Quarter Results

·	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).

FORT WORTH, Texas, July 24, 2007 - 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 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.

-more-

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.

Financial information follows:

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

	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2007			2006			2007			2006
				(As Adjusted)*						(As Adjusted)*
Operating revenues
Freight revenues	$	3,736		$	3,592		$	7,280		$	6,961
Other revenues		107			109			208			203
Total operating revenues		3,843			3,701			7,488			7,164

Operating expenses
Compensation and benefits		925			928			1,857			1,847
Fuel		771			678			1,423			1,239
Purchased services		507			481			1,009			945
Depreciation and amortization		322			290			629			579
Equipment rents		237			232			469			463
Materials and other (a)		240			228			566			434
Total operating expenses		3,002			2,837			5,953			5,507

Operating income		841			864			1,535			1,657
Interest expense		132			118			253			239
Other expense, net		6			11			11			20

Income before income taxes		703			735			1,271			1,398
Income tax expense		270			264			489			517

Net income	$	433		$	471		$	782		$	881

Diluted earnings per share	$	1.20		$	1.27		$	2.16		$	2.36

Diluted average shares outstanding (in millions)		360.8			370.7			362.2			373.7

Operating ratio (b)		77.5	%		75.9	%		78.9	%		76.2	%

(a) 2007 includes a first-quarter charge of $81 million for additional environmental expenses and a technology system write-off.
(b) Calculated as total operating expenses less other revenues divided by freight revenues.
* Prior year numbers have been adjusted for the retrospective adoption of the Financial Accounting Standards Board Staff Position (FSP) AUG AIR-1, Accounting for Planned Major Maintenance Activities.

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

		June 30,			December 31,
		2007			2006
					(As Adjusted)*
	Assets
	Current assets:
	Cash and cash equivalents	$	393		$	375
	Accounts receivable, net		788			805
	Materials and supplies		522			488
	Current portion of deferred income taxes		353			345
	Other current assets		286			168
	Total current assets		2,342			2,181

	Property and equipment, net		28,632			27,921

	Other assets		1,880			1,695

	Total assets	$	32,854		$	31,797

	Liabilities and stockholders' equity
	Current liabilities:
	Accounts payable and other current liabilities	$	2,968		$	2,853
	Long-term debt due within one year		392			473
	Total current liabilities		3,360			3,326

	Long-term debt and commercial paper		7,576			6,912
	Deferred income taxes		8,316			8,298
	Casualty and environmental liabilities		853			830
	Pension and retiree health and welfare liability		608			604
	Employee separation costs		83			86
	Other liabilities		1,389			1,213
	Total liabilities		22,185			21,269

	Stockholders' equity:
	Common stock and additional paid-in capital		7,260			6,995
	Retained earnings		10,330			9,739
	Treasury stock and other		(6,921	)		(6,206	)
	Total stockholders' equity		10,669			10,528

	Total liabilities and stockholders' equity	$	32,854		$	31,797

	Book value per share	$	30.19		$	29.42
	Common shares outstanding (in millions)		353.4			357.9
	Net debt to total capitalization (a)		41.5	%		40.0	%

(a)	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.
*	Prior year numbers have been adjusted for the retrospective adoption of FSP AUG AIR-1, Accounting for Planned Major Maintenance Activities.

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

		Three Months						Six Months
		Ended June 30,						Ended June 30,
		2007			2006			2007			2006
					(As Adjusted)*						(As Adjusted)*

	Operating activities

	Net income	$	433		$	471		$	782		$	881
	Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization		322			290			629			579
	Deferred income taxes		62			59			114			115
	Long-term casualty and environmental liabilities, net		(9	)		(21	)		33			(39	)
	Other, net		50			27			72			14
	Change in accounts receivable sales program		(300	)		50			-			200
	Other changes in working capital		(130	)		(110	)		(54	)		(185	)

	Net cash provided by operating activities		428			766			1,576			1,565

	Investing activities

	Capital expenditures		(615	)		(569	)		(1,152	)		(1,024	)
	Other, net		112			39			(182	)		(257	)

	Net cash used for investing activities		(503	)		(530	)		(1,334	)		(1,281	)

	Financing activities

	Dividends paid		(89	)		(73	)		(179	)		(147	)
	Purchase of BNSF common stock		(360	)		(261	)		(709	)		(375	)
	Proceeds from stock options exercised		60			25			115			87
	Other, net		465			58			549			149

	Net cash provided by (used for) financing activities		76			(251	)		(224	)		(286	)
	Increase (decrease) in cash and cash equivalents		1			(15	)		18			(2	)
	Cash and cash equivalents:
	Beginning of period		392			88			375			75
	End of period	$	393		$	73		$	393		$	73
*	Prior year numbers have been adjusted for the retrospective adoption of FSP AUG AIR-1, Accounting for Planned Major Maintenance Activities.

Burlington Northern Santa Fe Corporation
Operating Statistics*

	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2007		2006		2007		2006
			(As Adjusted)*				(As Adjusted)*

Cars/units (in thousands)		2,581		2,679		5,088		5,200

Average revenues per car/unit	$	1,448	$	1,341	$	1,431	$	1,339

Revenue ton miles (in millions)		163,428		163,207		320,691		317,503

Gross ton miles (in millions)		279,535		281,931		549,618		550,111

RTM/GTM		0.58		0.58		0.58		0.58

Freight revenue/thousand RTM	$	22.86	$	22.01	$	22.70	$	21.92

Operating expense/thousand RTM (a)	$	18.37	$	17.38	$	18.56	$	17.34

Freight revenue/thousand GTM	$	13.37	$	12.74	$	13.25	$	12.65

Operating expense/thousand GTM (a)	$	10.74	$	10.06	$	10.83	$	10.01

Compensation and benefits/thousand GTM	$	3.31	$	3.29	$	3.38	$	3.36

Average employees		41,763		41,847		41,488		41,260

Period-end employees		41,595		42,357		41,595		42,357

Thousand RTM/average employee		3,913		3,900		7,730		7,695

Thousand GTM/average employee		6,693		6,737		13,248		13,333

Gallons of fuel used (in millions)		356		370		716		730

Average price per gallon of fuel (b)	$	2.17	$	1.83	$	1.99	$	1.70

GTM/gallon of fuel		785		762		768		754

Freight train miles (in millions)		42		43		83		85

GTM/freight train hours (in thousands)		126		122		125		122

Route miles operated		32,332		31,943		32,332		31,943

(a) 2007 includes a first-quarter charge of $81 million for additional environmental expenses and a technology system write-off.
(b) Includes handling, taxes and hedge effect.
* Prior year numbers have been adjusted for the retrospective adoption of FSP AUG AIR-1, Accounting for Planned Major Maintenance Activities. Certain comparative prior period amounts have also been adjusted to conform to the current period presentation.

Burlington Northern Santa Fe Corporation
Revenue Statistics by Commodity*

		Three Months						Six Months
		Ended June 30,			Percent			Ended June 30,			Percent
Revenues (in millions)		2007		2006	Change			2007		2006	Change
Domestic Intermodal	$	610	$	637	(4.2)	%	$	1,196	$	1,217	(1.7)	%
International Intermodal		663		649	2.2			1,273		1,206	5.6
Automotive		127		120	5.8			243		234	3.8
Total Consumer Products		1,400		1,406	(0.4)			2,712		2,657	2.1

Industrial Products		950		911	4.3			1,796		1,753	2.5
Coal		776		713	8.8			1,536		1,392	10.3
Agricultural Products		610		562	8.5			1,236		1,159	6.6
Total freight revenue		3,736		3,592	4.0			7,280		6,961	4.6
Other revenue		107		109	(1.8)			208		203	2.5
Total revenues	$	3,843	$	3,701	3.8	%	$	7,488	$	7,164	4.5	%

Cars/units (in thousands)
Domestic Intermodal		510		532	(4.1)	%		1,017		1,046	(2.8)	%
International Intermodal		746		818	(8.8)			1,473		1,545	(4.7)
Automotive		44		45	(2.2)			85		90	(5.6)
Total Consumer Products		1,300		1,395	(6.8)			2,575		2,681	(4.0)
											.
Industrial Products		431		433	(0.5)			821		844	(2.7)
Coal		611		613	(0.3)			1,205		1,194	0.9
Agricultural Products		239		238	0.4			487		481	1.2
Total cars/units		2,581		2,679	(3.7)	%		5,088		5,200	(2.2)	%

Average revenue per car/unit
Domestic Intermodal	$	1,196	$	1,197	(0.1)	%	$	1,176	$	1,163	1.1	%
International Intermodal		889		793	12.1			864		781	10.6
Automotive		2,886		2,667	8.2			2,859		2,600	10.0
Total Consumer Products		1,077		1,008	6.8			1,053		991	6.3

Industrial Products		2,204		2,104	4.8			2,188		2,077	5.3
Coal		1,270		1,163	9.2			1,275		1,166	9.3
Agricultural Products		2,552		2,361	8.1			2,538		2,410	5.3
Average revenue per car/unit	$	1,448	$	1,341	8.0	%	$	1,431	$	1,339	6.9	%

Revenue ton miles (in millions)
Domestic Intermodal		12,836		13,444	(4.5)	%		25,424		26,408	(3.7)	%
International Intermodal		21,313		21,594	(1.3)			41,633		40,786	2.1
Automotive		1,629		1,542	5.6			3,093		3,023	2.3
Total Consumer Products		35,778		36,580	(2.2)			70,150		70,217	(0.1)

Industrial Products		30,628		31,167	(1.7)			58,364		60,941	(4.2)
Coal		69,307		68,151	1.7			135,741		131,200	3.5
Agricultural Products		27,715		27,309	1.5			56,436		55,145	2.3
Total revenue ton miles		163,428		163,207	0.1	%		320,691		317,503	1.0	%

Freight revenue per thousand ton miles
Domestic Intermodal	$	47.52	$	47.38	0.3	%	$	47.04	$	46.08	2.1	%
International Intermodal		31.11		30.05	3.5			30.58		29.57	3.4
Automotive		77.96		77.82	0.2			78.56		77.41	1.5
Total Consumer Products		39.13		38.44	1.8			38.66		37.84	2.2

Industrial Products		31.02		29.23	6.1			30.77		28.77	7.0
Coal		11.20		10.46	7.1			11.32		10.61	6.7
Agricultural Products		22.01		20.58	6.9			21.90		21.02	4.2
Freight revenue per thousand ton miles	$	22.86	$	22.01	3.9	%	$	22.70	$	21.92	3.6	%
* Certain comparative prior period amounts have been adjusted to conform to the current period presentation.

Burlington Northern Santa Fe Corporation
Capital Expenditures and Track Maintenance

	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2007		2006		2007		2006

Capital expenditures (in millions)
Maintenance of way
Rail	$	117	$	101	$	199	$	156
Ties		100		90		178		154
Surfacing		78		65		126		103
Other		102		109		205		204
Total maintenance of way		397		365		708		617
Mechanical		36		42		62		85
Information services		20		18		36		34
Other		24		29		51		60
Total maintenance of business		477		454		857		796

Terminal and line expansion		138		115		295		228
Total capital expenditures	$	615	$	569	$	1,152	$	1,024

Track maintenance
Track miles of rail laid
Maintenance of business		246		246		371		353
Expansion projects		51		29		72		60
Total		297		275		443		413

Cross ties inserted (thousands)
Maintenance of business		818		738		1,482		1,311
Expansion projects		133		101		187		193
Total		951		839		1,669		1,504

Track resurfaced (miles)		4,234		4,211		6,370		6,742