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

All-Time Record Quarterly EPS, Revenues and Operating Income

·	Quarterly earnings were $1.48 per diluted share, or 11 percent higher than third-quarter 2006 earnings of $1.33 per diluted share.

·	Freight revenues increased $133 million, or 4 percent, to $3.95 billion compared with the third quarter of 2006.

·	Operating income of $1 billion increased $80 million, or 9 percent, compared to the same 2006 period.

FORT WORTH, Texas, October 23, 2007 - Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported all-time record quarterly earnings of $1.48 per diluted share, compared with third-quarter 2006 earnings of $1.33 per diluted share.

“BNSF achieved record quarterly revenues, operating income and earnings as a result of our diverse portfolio of businesses, strong cost control and improved yields. We were able to produce record earnings and quarterly operating income that exceeded $1 billion for the first time in our Company’s history despite continued economic softness in our Consumer and Industrial Products business groups,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. "Although we have concerns near-term about the economy, housing markets, high fuel prices and general consumer softness, we continue to be optimistic about the long-term future of BNSF," Rose added.

Third-quarter 2007 freight revenues increased $133 million, or 4 percent, to an all-time quarterly record of $3.95 billion compared with $3.82 billion in the prior year. The 4-percent increase in revenue is primarily attributable to strong yields as well as volume growth in our Agricultural Products business.

-more-

Agricultural Products revenues were up $60 million, or 10 percent, to an all-time quarterly record of $682 million for the third-quarter of 2007. This increase was primarily due to an 8-percent unit volume increase, predominately from wheat, ethanol, fertilizer and bulk foods. Coal revenues rose by $101 million, or 14 percent, to $849 million. These results include a net increase in revenues of $14 million, or approximately $0.02 per share, as a result of developments in several coal rate disputes. Coal unit volumes were relatively flat principally due to mine production issues. Industrial Products revenues increased by $11 million, or 1 percent, to $962 million on 2 percent lower unit volumes. Continued strong demand for petroleum products was offset by a decline in building and construction products as a result of weakness in the housing market. Consumer Products revenues of $1.46 billion were $39 million, or 3 percent less than the third quarter of 2006. This was principally due to a decrease in unit volumes as a result of economic softness as well as reduced trans-pacific service of a large international customer.

Operating expenses for the third quarter of 2007 were up $50 million as a 4-percent reduction in compensation and benefits was more than offset by a 7-percent increase in the price of fuel.

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						Nine Months
	Ended September 30,						Ended September 30,
	2007			2006			2007			2006
				(As Adjusted)*						(As Adjusted)*
Operating revenues
Freight revenues	$	3,948		$	3,815		$	11,228		$	10,776
Other revenues		121			124			329			327
Total operating revenues		4,069			3,939			11,557			11,103

Operating expenses
Compensation and benefits		937			975			2,794			2,822
Fuel		814			792			2,237			2,031
Purchased services		501			500			1,510			1,445
Depreciation and amortization		324			296			953			875
Equipment rents		235			232			704			695
Materials and other (a)		257			223			823			657
Total operating expenses		3,068			3,018			9,021			8,525

Operating income		1,001			921			2,536			2,578
Interest expense		132			125			385			364
Other expense, net		6			10			17			30

Income before income taxes		863			786			2,134			2,184
Income tax expense		333			297			822			814

Net income	$	530		$	489		$	1,312		$	1,370

Diluted earnings per share	$	1.48		$	1.33		$	3.64		$	3.69

Diluted average shares outstanding (in millions)		357.1			366.8			360.5			371.4

Operating ratio (b)		74.6	%		75.9	%		77.4	%		76.1	%

(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)

		September 30,			December 31,
		2007			2006
					(As Adjusted)*
	Assets
	Current assets:
	Cash and cash equivalents	$	375		$	375
	Accounts receivable, net		984			805
	Materials and supplies		518			488
	Current portion of deferred income taxes		357			345
	Other current assets		247			168
	Total current assets		2,481			2,181

	Property and equipment, net		29,048			27,921

	Other assets		2,006			1,695

	Total assets	$	33,535		$	31,797

	Liabilities and stockholders' equity
	Current liabilities:
	Accounts payable and other current liabilities	$	3,048		$	2,853
	Long-term debt due within one year		403			473
	Total current liabilities		3,451			3,326

	Long-term debt and commercial paper		7,820			6,912
	Deferred income taxes		8,433			8,298
	Casualty and environmental liabilities		842			830
	Pension and retiree health and welfare liability		608			604
	Employee separation costs		80			86
	Other liabilities		1,422			1,213
	Total liabilities		22,656			21,269

	Stockholders' equity:
	Common stock and additional paid-in capital		7,299			6,995
	Retained earnings		10,747			9,739
	Treasury stock and other		(7,167	)		(6,206	)
	Total stockholders' equity		10,879			10,528

	Total liabilities and stockholders' equity	$	33,535		$	31,797

	Book value per share	$	31.04		$	29.42
	Common shares outstanding (in millions)		350.5			357.9
	Net debt to total capitalization (a)		41.9	%		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						Nine Months
		Ended September 30,						Ended September 30,
		2007			2006			2007			2006
					(As Adjusted)*						(As Adjusted)*

	Operating activities

	Net income	$	530		$	489		$	1,312		$	1,370
	Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization		324			296			953			875
	Deferred income taxes		106			46			220			161
	Long-term casualty and environmental liabilities, net		(7	)		(1	)		26			(40	)
	Other, net		50			29			122			43
	Change in accounts receivable sales program		(100	)		(200	)		(100	)		–
	Other changes in working capital		(14	)		142			(68	)		(43	)

	Net cash provided by operating activities		889			801			2,465			2,366

	Investing activities

	Capital expenditures		(623	)		(525	)		(1,775	)		(1,549	)
	Other, net		(154	)		(39	)		(336	)		(296	)

	Net cash used for investing activities		(777	)		(564	)		(2,111	)		(1,845	)

	Financing activities

	Dividends paid		(89	)		(73	)		(268	)		(220	)
	Purchase of BNSF common stock		(255	)		(215	)		(964	)		(590	)
	Proceeds from stock options exercised		11			12			126			99
	Other, net		203			50			752			199

	Net cash used for financing activities		(130	)		(226	)		(354	)		(512	)
	(Decrease) increase in cash and cash equivalents		(18	)		11			–			9
	Cash and cash equivalents:
	Beginning of period		393			73			375			75
	End of period	$	375		$	84		$	375		$	84
*	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				Nine Months
	Ended September 30,				Ended September 30,
	2007		2006		2007		2006
			(As Adjusted)*				(As Adjusted)*

Cars/units (in thousands)		2,630		2,760		7,718		7,960

Average revenues per car/unit	$	1,501	$	1,382	$	1,455	$	1,354

Revenue ton miles (in millions)		166,635		166,564		487,326		484,067

Gross ton miles (in millions)		283,465		287,318		833,083		837,429

RTM/GTM		0.59		0.58		0.58		0.58

Freight revenue/thousand RTM	$	23.69	$	22.90	$	23.04	$	22.26

Operating expense/thousand RTM (a)	$	18.41	$	18.12	$	18.51	$	17.61

Freight revenue/thousand GTM	$	13.93	$	13.28	$	13.48	$	12.87

Operating expense/thousand GTM (a)	$	10.82	$	10.50	$	10.83	$	10.18

Compensation and benefits/thousand GTM	$	3.31	$	3.39	$	3.35	$	3.37

Average employees		41,293		41,666		41,262		41,267

Period end employees		41,087		41,770		41,087		41,770

Thousand RTM/average employee		4,035		3,998		11,811		11,730

Thousand GTM/average employee		6,865		6,896		20,190		20,293

Gallons of fuel used (in millions)		353		370		1,069		1,100

Average price per gallon of fuel (b)	$	2.31	$	2.12	$	2.09	$	1.84

GTM/gallon of fuel		803		777		779		761

Freight train miles (in millions)		42		44		126		130

GTM/freight train hours (in thousands)		130		123		127		122

Route miles operated		32,231		31,910		32,231		31,910

(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						Nine Months
		Ended September 30,			Percent			Ended September 30,			Percent
Revenues (in millions)		2007		2006	Change			2007		2006	Change
Domestic Intermodal	$	645	$	673	(4.2	)%	$	1,841	$	1,890	(2.6	)%
International Intermodal		690		710	(2.8	)		1,963		1,915	2.5
Automotive		120		111	8.1			363		345	5.2
Total Consumer Products		1,455		1,494	(2.6	)		4,167		4,150	0.4

Industrial Products		962		951	1.2			2,758		2,704	2.0
Coal		849		748	13.5			2,385		2,141	11.4
Agricultural Products		682		622	9.6			1,918		1,781	7.7
Total freight revenue		3,948		3,815	3.5			11,228		10,776	4.2
Other revenue		121		124	(2.4	)		329		327	0.6
Total revenues	$	4,069	$	3,939	3.3	%	$	11,557	$	11,103	4.1	%

Cars/units (in thousands)
Domestic Intermodal		528		551	(4.2	)%		1,545		1,597	(3.3	)%
International Intermodal		740		857	(13.7	)		2,213		2,402	(7.9	)
Automotive		39		39	–			124		129	(3.9	)
Total Consumer Products		1,307		1,447	(9.7	)		3,882		4,128	(6.0	)

Industrial Products		431		440	(2.0	)		1,252		1,284	(2.5	)
Coal		627		628	(0.2	)		1,832		1,822	0.5
Agricultural Products		265		245	8.2			752		726	3.6
Total cars/units		2,630		2,760	(4.7	)%		7,718		7,960	(3.0	)%

Average revenue per car/unit
Domestic Intermodal	$	1,222	$	1,221	0.1	%	$	1,192	$	1,183	0.8	%
International Intermodal		932		828	12.6			887		797	11.3
Automotive		3,077		2,846	8.1			2,927		2,674	9.5
Total Consumer Products		1,113		1,032	7.8			1,073		1,005	6.8

Industrial Products		2,232		2,161	3.3			2,203		2,106	4.6
Coal		1,354		1,191	13.7			1,302		1,175	10.8
Agricultural Products		2,574		2,539	1.4			2,551		2,453	4.0
Average revenue per car/unit	$	1,501	$	1,382	8.6	%	$	1,455	$	1,354	7.5	%

Revenue ton miles (in millions)
Domestic Intermodal		13,331		13,785	(3.3	)%		38,755		40,193	(3.6	)%
International Intermodal		20,854		22,429	(7.0	)		62,487		63,215	(1.2	)
Automotive		1,454		1,379	5.4			4,547		4,402	3.3
Total Consumer Products		35,639		37,593	(5.2	)		105,789		107,810	(1.9	)

Industrial Products		30,337		30,936	(1.9	)		88,701		91,877	(3.5	)
Coal		71,468		69,934	2.2			207,209		201,134	3.0
Agricultural Products		29,191		28,101	3.9			85,627		83,246	2.9
Total revenue ton miles		166,635		166,564	–	%		487,326		484,067	0.7	%

Freight revenue per thousand ton miles
Domestic Intermodal	$	48.38	$	48.82	(0.9	)%	$	47.50	$	47.02	1.0	%
International Intermodal		33.09		31.66	4.5			31.41		30.29	3.7
Automotive		82.53		80.49	2.5			79.83		78.37	1.9
Total Consumer Products		40.83		39.74	2.7			39.39		38.49	2.3

Industrial Products		31.71		30.74	3.2			31.09		29.43	5.6
Coal		11.88		10.70	11.0			11.51		10.64	8.2
Agricultural Products		23.36		22.13	5.6			22.40		21.39	4.7
Freight revenue per thousand ton miles	$	23.69	$	22.90	3.4	%	$	23.04	$	22.26	3.5	%
* 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				Nine Months
	Ended September 30,				Ended September 30,
	2007		2006		2007		2006

Capital expenditures (in millions)
Maintenance of way
Rail	$	106	$	95	$	305	$	251
Ties		78		91		256		245
Surfacing		68		67		194		170
Other		128		99		333		303
Total maintenance of way		380		352		1,088		969
Mechanical		40		26		102		111
Information services		13		12		49		46
Other		23		22		74		82
Total maintenance of business		456		412		1,313		1,208

Terminal and line expansion		167		113		462		341
Total capital expenditures	$	623	$	525	$	1,775	$	1,549

Track maintenance
Track miles of rail laid
Maintenance of business		228		206		599		559
Expansion projects		75		51		147		111
Total		303		257		746		670

Cross ties inserted (thousands)
Maintenance of business		747		796		2,229		2,107
Expansion projects		144		94		331		287
Total		891		890		2,560		2,394

Track resurfaced (miles)		3,448		3,665		9,818		10,407