Union Pacific Corp and Norfolk Southern Corp Merger Application Conference Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jonathan Chappell - Evercore Inc - Analyst : I'm going to throw this to Kenny. It's a perfect follow-up, I think, to the prior question. Can you just explain a little bit more about the committed gateway pricing, what this means exactly, how it benefits your peers and why that basically was the reason why $750 million of concessions was removed from the forecast?

Question: David Vernon - Sanford C Bernstein & Co LLC - Analyst : Congratulations to the team on getting this thing in. So --

Question: David Vernon - Sanford C Bernstein & Co LLC - Analyst : Well, at least it's before the week of Christmas anyway. So Kenny, maybe the natural extension of that would be to maybe talk a little bit about whether you've gotten any feedback from BN or CSX on this idea. And then the core question I would have for you is I just want to make sure we understand the 1.4 million intermodal loads and 450,000 carloads that you've identified as growth. Is that net new to the industry? Or does that also include some revenue diversion from airline service on other railroads? I'm just trying to make sure I understand what is net new and what is maybe diversion? And then if you have any sort of feedback on whether BN or CSX have commented on this committed gateway pricing strategy?

Question: Scott Group - Wolfe Research LLC - Analyst : So is the cost of the committed gateway in the $2 billion of net revenue synergies and how much? And maybe just, Jennifer, like can you just like what is the net change in your financial assumptions here? And then maybe, Jim, a yes, no question, if you're looking for one. There's been a lot of statements to support some opposition rails, some rails, Teamsters, some shipper groups. Like have you seen anything or heard anything that changes your view of odds of approval here? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 19, 2025 / 1:45PM, UNP.N - Union Pacific Corp and Norfolk Southern Corp Merger Application

Question: Jason Seidl - Cowen and Company LLC - Analyst : Jim, Mark, thank you for the 6,700-page gift that you put out this morning. Previously, you mentioned the shipper overlap was fewer than 20. But what I've read so far, it looks like you pointed out that there's only 3-to-1 shippers, and you talked a little bit about some of the

Question: Brandon Oglenski - Barclays Services Corp - Analyst : I'm not sure if this is a yes or no question. But can you guys just give us -- sorry about that, but can you give us some context on the historical reason why watershed markets just have been overlooked by the rails and how this really is going to unlock potential in that marketplace?

Question: Ken Hoexter - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Wonderful. Appreciate reading congrats on getting it filed. So just on the committed gateway pricing, if we can delve into that, Jim or Jen for a minute. Just what kind of -- do you have kind of protections for slide back on rates or guarantee of access in the future? I think that was the issue we heard from some shippers about how things have fallen apart in other mergers in the past, just to keep those competitive terms. And then just more specifically on the Teamsters, was there something specific that they were highlighting? Or are you saying this was just a negotiating point?