BNSF 2019 coal revenues, volumes decline on lower natural gas prices

Houston — BNSF Railway saw a decrease in coal volumes and revenue in 2019, primarily as the result of lower natural gas prices and adverse weather conditions, the company reported Monday.

The Fort Worth, Texas-based railroad reported coal volumes of 1.8 million carloads, down 5% from 1.9 million carloads in 2018, according to its fourth-quarter earnings report filed Monday with the US Securities and Exchange Commission. It was the lowest annual coal volume in over 11 years.

Q4 coal carloads were at 464,000, down from 482,000 in Q3 and 501,000 in the year-ago quarter.

BNSF said the decrease in volumes was primarily due to lower natural gas prices, as well as severe winter weather and flooding in parts of the network.

Of the total 2.54 million carloads reported in Q4, coal volumes represented 18.3%, up from 18.2% in Q3 but down from 18.5% in the year-ago quarter.

The railroad generated $967 million in coal revenue in Q4, down from $996 million in Q3 and $1.08 billion in the year-ago quarter. Total coal revenues in 2019 were at $3.72 billion, down from $4.01 billion generated in 2018 and the lowest since $3.38 billion in 2016.

Coal's average revenue per unit (RPU) totaled $2,084/car in Q4, up from $2,066/car in Q3 but down from $2,164/car in the year-ago quarter.

BNSF's coal RPU in 2019 was at $2,062/car, down 2% from $2,109/car a year ago.

BNSF reported total operating revenues of $23.52 billion in 2019, down 1% year on year, while total RPU was at $2,185/car, up 4% from a year ago.

The railroad, which is privately-held by investor Warren Buffett's Berkshire Hathaway holding company, transports the most coal in the US, primarily from the Powder River Basin.