Coal Network Update. Jason Plett MANAGER, COAL MARKETING MARCH 14, 2018

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1 Coal Network Update Jason Plett MANAGER, COAL MARKETING MARCH 14, 2018

2 BNSF is a Leading U.S. Railroad Berkshire Hathaway company 41,000 employees 32,500 route miles in 28 states and three Canadian provinces 13,000 bridges and 88 tunnels Serves over 40 ports Approximately 8,000 locomotives Moves one-fourth of the nation s rail freight Operates over 1,400 freight trains per day Leads rail industry in technological innovation

3 BNSF Vision Our vision is to realize the tremendous potential of BNSF Railway by providing transportation services that consistently meet our customers expectations.

4 BNSF Volume Full Year 2017 Total units and % change from ,108 Agricultural Products -0.2% In Thousands Source: BNSF internal data 1,917 Coal +6.3% 1,813 Industrial Products +5.0% 2017 TOTAL VOLUME 10, % 5,439 Consumer Products +6.3% 4

5 Safety 5

6 BNSF A Culture Focused on Safety Employee Operational Community SAFETY VISION TO OPERATE FREE OF ACCIDENTS AND INJURIES

7 Wayside Detectors & Inspections Enhance Network Safety Wayside Detectors take 55 Million readings daily Every year 10 million+ miles of track are inspected 60,000+ bridge inspections per year are performed Radar & Drone technology deployed

8 Safety Leader for Continuous Risk Reduction BNSF vs. Industry Reportable Rail Equipment Incident Rate (Incidents per Million Train Miles) Industry RREI Rate BNSF RREI Rate Source: FRA

9 Capital Investments 9

10 BNSF s Capital Investments $ Billions Replacement Capital Expansion PTC Locomotive Equipment $5.5 $5.8 $2.3 $1.9 $2.1 $2.0 $2.6 $3.1 $3.8 $3.4 $3.4 $3.3 $2.7 $3.6 $3.6 $4.0 $3.9 $3.3 $ P

11 2017 Expansion in the Pacific Northwest New double track segment Seattle Hauser Fueling Facility Realigned track to increase fluidity Spokane New double track segment Vancouver New siding Pasco New double track segment

12 2018 Capital Investments $3.3B

13 2018 Line Expansion Projects Bellingham Sub: Siding extension Fallbridge Sub: New double-track Sandpoint Seattle Spokane Portland Whitefish Pasco Spokane Sub: New double-track; complete double track project Kootenai River Sub: New double-track; Signalize sidings; improvements to Flathead Tunnel Los Angeles Needles Sub: Begin triple-track project Needles Flagstaff Phoenix Seligman Sub: Expansion to quadruple main line track Gallup Sub: Begin triple-track project Belen Hereford Sub: Expansion to quadruple main line track Avard Sub: New siding Amarillo Fort Worth Houston St. Louis Wichita Falls Sub: Complete CTC installation & siding projects Conroe Sub: New connection Chicago Memphis Thayer North Sub: New siding and siding extension

14 Coal Overview 14

15 BNSF is the Largest Transportation Provider for the U.S. Coal Industry BNSF delivers more coal than any other company in the U.S. (228m tons in 2017) Involved in delivery of over 75% of the coal from the largest coal producing region in the U.S., the Powder River Basin (PRB) BNSF Railway Coal Route Coal Reserves 15

16 Powder River Basin (PRB) Ten of the largest U.S. coal mines are located in PRB region To Pacific Northwest Signal Peak Sheridan Dutch Forsyth Absaloka - Westmoreland Spring Creek Cloud Peak Decker Lighthouse Buckskin - Kiewit Gillette Campbell Caballo - Peabody Belle Ayr Blackjewel Caballo Rojo Cloud Peak Cordero Cloud Peak Black Thunder - West - Arch Antelope Cloud Peak Eagle Butte - Blackjewel Rawhide - Peabody Dry Fork - Western Fuels Donkey Creek BNSF UP Joint Line Joint Line Mines Campbell Sub Wyoming Mines Montana Mines Coal Creek - Arch Glendive Montana Wyoming Guernsey North Dakota South Dakota To Bismarck Edgemont Black Thunder & East Thunder Arch Nebraska NARM-North - Peabody N Antelope/Rochelle - Peabody Alliance Shawnee Jct. To Denver To Lincoln Northport

17 Coal Volumes BNSF COAL TONS (IN MILLIONS ) Source: BNSF internal data

18 Nominations COAL TONS (IN MILLIONS ) Source: BNSF internal data through February 2018

19 Set Count COAL SETS Source: BNSF internal data through February 2018

20 Coal Velocity BNSF COAL VELOCITY (IN MILES PER DAY) % YTD 2018 vs JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -10% YTD 2018 vs Source: BNSF internal data through February 2018

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