Energy By Rail

John MillerGROUP VICE PRESIDENT, INDUSTRIAL PRODUCTS

MAY 16, 2019

Flooding Impacting Operations in Midwest

Belt train near Louisville, Nebraska on March 21

Crews repair damaged track near Plattsmouth, Nebraska on March 21

Crews work to repair washed out track near Louisville, Nebraska

on March 21

Midwest Flooding Service Recovery Efforts

3

Napier Subdivision near Bartlett, IowaApril 25, 2019

5

BNSF Business Model

PeopleFranchise

ServiceReturn

Community

6

Shale Drilling Pushes Energy Production Higher

Source: Energy Information Administration

U.S. Crude Oil Production

WTIPrice

Petroleum Carloads Trend Higher in 2018

7Source: Association of American Railroads, Petroleum Products Commodity Group

8

Energy Related Markets Lead BNSF Industrial Growth

Change in Units Handled 52 Weeks: 2018 vs. 2017

Through December 29, 2018

BNSF

Units in thousandsSource: Association of American Railroads

Petroleum Products

Metals

Crushed Stone

Favorable Crude Spreads Create Opportunities

9Source: Energy Information Association

WTI Price

WTI-Brent Spread

10

Crude Oil Production Growth Expands Rail Origins

Source: Energy Information Administration

Permian

Eagle FordBakkenNiobraraAnadarko

11

Canadian Crude By Rail Growth

Source: Canadian Association of Petroleum Products (CAPP), Energy Information Administration (EIA) and National Energy Board (NEB)

12

Pipeline Constraints Provide Rail Opportunities

Permian Production & Pipeline Takeaway (M bbl/day) W. Canadian Production & Pipeline Takeaway (M bbl/day)

Curtailment started

Enbridge Line 3

Trans Mountain

Keystone XL

Source: Canadian Association of Petroleum Products (CAPP)Source: Energy Information Administration, Company estimates

LEVEE

WELLINGTON

CASPERPRONGHORNDOUGLAS

E. FAIRVIEW

CHERRY POINT

W PORT ARTHURDEER

PARK

HOUSTON

LINDENEDDYSTONE

STROUD

FORT LARAMIECHEYENNE

TAMPAPRICE

CARLSBADSLATON

ARCO

AMOCO

KORF

GREENSPORTNEW ORLEANS

PHILADELPHIA

REPUBLICELAND

ST. JAMES

HARPERTOWN

GALVESTON

TIOGA

RACELAND

WILLBRIDGE

PALERMO

LAKE CHARLES

FRYBURG

TRENTONEPPING

FIDALGOTACOMA

PORT WESTWARD

NEDERLANDPORT ARTHUR

WALNUT HILL

REYBOLD

Crude-by-Rail Facilities

Unit Train Origin FacilityUnit Train Destination FacilityBNSF NetworkOther Rail

Crude By Rail Offers Flexibility and Optionality

MCCAMEY

SWEETWATER

EDMONTON BRUDERHEIMLLOYDMINSTER

LASHBURNUNITY

KERROBERT

HARDISTY

LOVING

14

Proliferation of In-Basin Tonnage Causing Oversupply

Source: Company estimates, Rystad ShaleIntel Q2 19, Infill Thinking

Active MineUnder Construction

Mid Con In-Basin Mines

Permian In-Basin MinesActive Mine

Clinton OKC

Odessa

Loving

Kermit

Monahans

2019 Demand

15

Substantial Pipeline Investment to Improve Takeaway Capacity

Pending Pipeline Projects

Source: Energy Information Administration, Company estimates

Permian Production & Pipeline Takeaway (M bbl/day)

Capital Investments

16

BNSF’s Capital Investments

BNSF HAS MADE NEARLY

$65BILLION

IN CAPITAL INVESTMENTS

IN OUR RAILROAD SINCE 2000.

17

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2019 Capital Investments $3.57B

2019 Line Expansion Projects

Clovis Sub:Track extensions

at Belen

Needles Sub:New triple-track

Kootenai River:New double-track

Fallbridge Sub:New double-track

& CTC

Hi Line Sub:Track extensions

at Shelby

Thayer North Sub:New siding

Fort Worth Sub:Begin multiple double-track

projects

Madill

CHICAGO

Eagle Pass Border Gateway:

New staging tracks

Shelby

Spokane

FT. WORTH

MEMPHIS

KANSAS CITY

Temple

WinslowNeedles

Eagle Pass

Belen

Wishram

Sandpoint

Madill Sub:New sidings &

CTC

Springfield

Emporia Sub:Begin multiple

double-track projects

HOUSTON

LOS ANGELES

SEATTLEWhitefish

DALLASSeligman Sub:

New quadruple-track and crossovers

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2020