Union Pacific Corporation

Thank you for accessing Union Pacific Corporation's 2020 Fourth Quarter Earnings Conference Call, held at 8.45 a.m. Eastern Time on January 21, 2021, in Omaha, Nebraska. This presentation and accompanying materials include statements that contain estimates, projections, or expectations regarding the company's financial results and operations and future economic conditions. These statements are forward-looking statements as defined by the federal securities laws. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. The materials accompanying this presentation include more detailed information regarding forward-looking information and these risks and uncertainties. In addition, please refer to the company's website and SEC filings for additional information about our risk factors. Thank you.

Greetings, and welcome to the Union Pacific fourth quarter 2020 conference call. At this time, all participants will be in listening mode. A brief question and answer session will follow the formal presentation. If anyone today should require operator assistance during the conference, please press star zero from your telephone keypad. As a reminder, this conference is being recorded, and the slides for today's presentation are available on Union Pacific's website. It is now my pleasure to introduce your host, Mr. Lance Fritz, Chairman, President, and CEO for Union Pacific. Mr. Fritz, you may now begin.

Thank you very much, Rob, and good morning, everybody. And welcome to Union Pacific's fourth quarter earnings conference call. I apologize for the delay. Our service provider was experiencing technical difficulties this morning. We will handle any necessary and appropriate public disclosures after the call. With me today in Omaha are Eric Geringer, Executive Vice President of Operations, Kenny Rocker, Executive Vice President of Marketing and Sales, and Jennifer Heyman, our Chief Financial Officer. Before discussing our fourth quarter and full year results, I must first acknowledge the performance of our exceptional employees. 2020 presented challenges that no one anticipated and all of us hope to never experience again. The women and men of Union Pacific worked hard in the face of the pandemic to provide our customers with fluid and uninterrupted service. Their dedication produced service and efficiency improvements that are now part of the UPD&A. positioning our company to flourish in the days ahead. This past year has reinforced my conviction that our people are truly the best in the business. Moving on to our fourth quarter results. This morning, Union Pacific is reporting 2020 fourth quarter net income of $1.4 billion, or $2.05 per share. These results include the impact of the previously announced $278 million pre-tax non-cash impairment charge related to our Brazos yard investment. Excluding that charge, adjusted net income is $1.6 billion or $2.36 per share. This compares to $1.4 billion or $2.02 per share in the fourth quarter of 2019. Our adjusted quarterly operating ratio came in at 55.6%, an all-time quarterly record and 410 basis points better than the fourth quarter of 2019. These outstanding results demonstrate our potential when we leverage all three profitability drivers simultaneously, volume growth, productivity, and pricing. Our fourth quarter and full-year performance bolsters the optimism we have for the long-term potential of our company. To provide a bit more detail, we're going to start with Eric and an operations update.