The company saw improvements in velocity highlighting the fluidity of network.

- In locomotives the company saw a 2% improvement over the first quarter of 2007.
- In car velocity the company had 3% improvement over the same quarter in 2007.
- The company saw improvement in on time performance primarily driven by coal and consumer.

Work force was down about 2% versus the first quarter last year taken with the almost 5% increase in gross 10 miles the company saw a 6.8% improvement in GTMs per employee driven by initiatives as well as the business mix.

- In equipment overall comparison of inventory to units was unfavorable although the company did see solid results in Ag and coal.
- In fuel efficiency, the company saw 3.6% improvement over the first quarter of 2007 again driven by initiatives as well as the favorable business mix.

Second Quarter 2008 Outlook

- The company expects second quarter 2008 total operating expense growth rate to be in the mid teens compared to the second quarter of 2007, about three quarters of the expected increase is due to fuel.
- The company anticipates freight revenue growth in the mid teens, on flat unit volumes. Drivers of this growth should be similar to the first quarter with continuing strong yield improvement across four major business segments.
- The company expects earnings per share growth in the high teens over 2007 earnings of $1.20 per share.

Fiscal 2008 Outlook

- Due to the soft economy, the company is continuing to see slower volumes in specific sectors and looking forward it expects to see this trend continued during the second quarter of 2008. Additionally as a result of higher fuel prices, fuel surcharge revenue will also increase. In coal PRB burn is expected to increase over last year and BNSF is well position to handle growth. In Ag the company expects to see continued strong PNW corn exports. Weak PNW and Gulf exports are expected to be flat as U.S. carry out approaches record lows.

- Domestic shipments will pick up beginning in second quarter as new ethanol plants come on line. Industrial products should continue to feel the impact of the economic slow down in the building product sector offset by growth in construction and petroleum products. Despite soft consumer products business levels driven by the weakening economy, the company expects to see positive revenue growth based on continued deal management. The company expects revenue growth in the mid teens.

- The company is increasing freight revenue outlook from high single digit to low double-digit growth particularly partially reflecting higher fuel surcharges. This outlook continues to assume unit volumes remain about flat give or take a percent or two for the rest of the year and pricing remains firm. This is in spite of the economic weakness that continues to affect consumer products business and parts of industrial products businesses. The company is benefiting from the diversity of franchise and expects EPS for 2008 to approach $6 per share. The company continues to expect free cash flow after dividends to approach $1 billion and it is committed to resuming trend of improving return on invested capital.

Key questions from the first quarter earnings call conducted by Burlington Northern Santa Fe Corp. on April 29, 2008.

Ken Hoexter (Merrill Lynch): The corn plantings seem to be off to a slow start. How does that impact your outlook on the Ag side if at all just because of some of the weather issues they are having in the Midwest?

John P. Lanigan, Jr.: It is too early to tell. We are concerned that they are behind on the plantings but if we get, of dry weather they will get out in the fields quickly.

Ken Hoexter (Merrill Lynch): Can you talk about the elasticity of demand on these increased surcharges?

John P. Lanigan, Jr.: There is not a big short-term swing. The trucking industry is concerned about their driver situation and hang on to the drivers that they do have. As you have seen in some of their reports they are being aggressive in the marketplace but we are not seeing big swings back and forth. The freight that is coming to us is the freight that should be coming to us the long haul type of volume. We are having some increased discussions with some of the truckers who are realizing the benefits of working with rail as well but those things take some time to develop.

Ken Hoexter (Merrill Lynch): The comp per employee was up 8%, last year it was about flat. Can you detail that?

Thomas N. Hund: I described it as combination of the normal increases that are going on as well as the incentive compensation accruals for both our scheduled and exempt employees and remember that we have got a significant number of our scheduled employees included in the same compensation goals that the management employees are. It was up about 7.5% and it was flat year-over-year the year before. Over the two year period that is up in the 3%, 3.25%, 3.5% range which was reasonable, spread differently because of the lack of incentive compensation last year and restoring to more normal levels this year. That accounts for about half of it and the rest of it is wage inflation and other wage and benefit inflation and other activity and noise in the quarter.

Ken Hoexter (Merrill Lynch): On fuel you had about $280 million coverage on a $357 million increase. It is about 78% coverage, where do you anticipate that moving toward to the end of the year, are there enough contracts coming up for renewal that you can increase that coverage?

Matthew K. Rose: They come up periodically. It is longer slow slog at this point next year. Overall coverage rate is more in the lower 80s right now and we will be approaching mid 80s by the end of the year.

Ken Hoexter (Merrill Lynch): In America, it looked like on the on time performance you improved but it looks like the Ag fell steeply and coal is now near perfection. Is it just the increased demand causing so much more volumes on the Ag side or is there anything more to that?