Union Pacific Corporation

Good morning. Thank you for accessing Union Pacific Corporation's 2024 Second Quarter Earnings Conference Call, held at 845 Eastern Time on July 25, 2024, 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 Law. 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. Welcome to the Union Pacific second quarter earnings call. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone this morning should require operator assistance during today's 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. Jim Venna, Chief Executive Officer for Union Pacific. Thank you, Mr. Venna. You may now begin.

Thanks, Rob. And good morning, and nice to come to you all from a beautiful morning here in Omaha. And thanks for joining us today to discuss Union Pacific's second quarter results. I'm joined by our Chief Financial Officer, Jennifer Heyman, our Executive Vice President of Marketing and Sales, Kenny Rocker, and our Executive Vice President of Operations, Eric Geringer. As we dive into the discussion of the second quarter, you'll hear that operating outdoors these past few months has not been easy, but I'm pleased with how we manage those challenges to drive strong financial results. It provides another proof point that our strategy is the right one to drive success. And let's discuss second quarter results starting on slide three. This morning, Union Pacific reported 2024 second quarter net income of $1.7 billion, or $2.74 per share. This compares to 2023 second quarter net income of $1.6 billion or $2.57 per share. Second quarter operating revenue was up 1% as solid core pricing gains and slightly increased volume were reduced by a negative business mix and lower fuel surcharge revenue. And if you're normalizing for the yearly change in fuel, freight revenue was up 2% versus 2023. Reported expenses year over year were down 4%. This is very impressive work by the team to offset the high inflationary pressure we've experienced in a flattish volume environment, even when you adjust for one-time items and fuel. Our second quarter operating ratio of 60.0% improved 300 basis points versus last year, and despite some challenges, we still showed sequential improvement. Overall, this quarter was another solid step toward our goal of leading the industry in safety, service, and operational excellence. I'll let the team walk you through the quarter in more detail and then come back for a wrap-up before we go to Q&A. So we'll start with Jennifer and the second quarter financials. Jennifer?