Union Pacific Corporation

Thank you for accessing Union Pacific Corporation's 2021 Third Quarter Earnings Conference Call, held at 8.45 a.m. Eastern Time on October 21, 2021, in Omaha, Nebraska. This presentation and the 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. Thanks.

Greetings. Welcome to Union Pacific's third quarter 2021 conference call. At this time, all participants will be in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone 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 begin.

Thank you, Rob, and good morning, everybody. Welcome to Union Pacific's third quarter earnings conference call. With me today in Omaha are Kenny Rocker, Executive Vice President of Marketing and Sales, Eric Geringer, Executive Vice President of Operations, and Jennifer Heyman, our Chief Financial Officer. During the quarter, the Union Pacific team dealt with multiple network disruptions that required us to rebuild bridges, reroute trains, and connect more closely with other links in the supply chain to support and to serve our customers. While we still have work ahead, our employees' dedication is a critical success factor in navigating all of those challenges. Turning to our third quarter results. This morning, Union Pacific is reporting 2021 third quarter net income of $1.7 billion, or $2.57 per share. This compares to $1.4 billion, or $2.01 per share, in the third quarter of 2020. Despite the network and global supply chain challenges, our quarterly operating ratio of 56.3% improved 240 basis points versus last year and represents a third quarter record. We also set third quarter records in operating income, net income, and earnings per share. The team did an excellent job of managing the business to produce strong results. A comparison to 2019, a period with higher volumes, further highlights our performance and demonstrates our focus on driving productivity and network efficiency to overcome external factors. We also continue to make progress on our goal to reduce our carbon footprint. The team achieved strong productivity to produce an all-time quarterly record low fuel consumption rate. This represented a 1% improvement versus 2020 and helped our customers eliminate 5.7 million metric tons of greenhouse gas emissions in the quarter by using Union Pacific versus truck. Momentum is building, and before the end of the year, we plan to detail our emissions reduction plan with the release of our initial climate action plan. So let's start the morning with Kenny for an update on the business environment.