Union Pacific

Financial

Union Pacific Reports All-Time Quarterly Records

Diluted Earnings per Share up 21 Percent

Omaha, Neb., July 24, 2014

Union Pacific Corporation (NYSE: UNP) today reported 2014 second quarter net income of $1.3 billion, or $1.43 per diluted share, compared to $1.1 billion, or $1.18 per diluted share, in the second quarter 2013.

"Union Pacific achieved record quarterly financial results, leveraging the strengths of our diverse franchise to handle strong demand in the face of challenging operating conditions," said Jack Koraleski, Union Pacific chief executive officer. "We were pleased to see strong volume growth which, combined with solid core pricing, drove more than a two-point improvement in our Operating Ratio to a record 63.5 percent for the quarter."

Second Quarter Summary

Operating revenue increased 10 percent in the second quarter 2014 to $6.0 billion, versus $5.5 billion in the second quarter 2013. Second quarter business volumes, as measured by total revenue carloads, increased 8 percent compared to 2013. Volume increased in agricultural products, intermodal, industrial products, automotive and coal. Chemicals volumes declined slightly versus 2013 as a reduction in crude oil shipments more than offset growth in base chemicals. In addition:

• Quarterly freight revenue increased 10 percent compared to the second quarter 2013, driven by volume growth and core pricing gains.
• Union Pacific's operating ratio of 63.5 percent was an all-time quarterly record, 2.2 points better than the second quarter 2013 and 1.3 points better than the previous all-time quarterly record set in the third quarter 2013.
• The average quarterly diesel fuel price of $3.10 per gallon in the second quarter 2014 was flat compared to the second quarter 2013.
• Quarterly train speed, as reported to the Association of American Railroads, was 23.9 mph, down 7 percent versus the second quarter 2013.
• The Company repurchased 8.3 million shares in the second quarter 2014 at an average share price of $96.84 and an aggregate cost of $806 million.

Summary of Second Quarter Freight Revenues

• Agricultural Products up 19 percent
• Intermodal up 16 percent
• Industrial Products up 16 percent
• Chemicals up 3 percent
• Automotive up 2 percent
• Coal up 1 percent

2014 Outlook

"We are optimistic about the second half of the year," Koraleski said. "As always, we are closely monitoring the economic landscape, along with the major drivers across all of our business segments, including the potential impact of weather on grain and coal. As the economy gradually continues to improve, the power of our diverse franchise provides business growth opportunities in all of our commodity groups. The men and women of Union Pacific are committed to safely improving our network performance, allowing us to provide customers with the excellent service they deserve, while rewarding our shareholders with increasing returns."

About Union Pacific

Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP). One of America's most recognized companies, Union Pacific Railroad connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. From 2004-2013, Union Pacific invested approximately $30 billion in its network and operations to support America's transportation infrastructure. The railroad's diversified business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner.

Investor contact is Mike Staffenbeal, (402) 544-4227.

• Supplemental financial information is attached.

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This presentation and related materials contain statements about the Corporation's future that are not statements of historical fact, including specifically the statements regarding the Corporation's expectations with respect to economic conditions, the potential impact of weather on certain segments of our business, and its ability to improve network performance, provide quality customer service, and provide returns to its shareholders. These statements are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements also generally include, without limitation, information or statements regarding: projections, predictions, expectations, estimates or forecasts as to the Corporation's and its subsidiaries' business, financial, and operational results, and future economic performance; and management's beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will be achieved. Forward-looking information, including expectations regarding operational and financial improvements and the Corporation's future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement. Important factors, including risk factors, could affect the Corporation's and its subsidiaries' future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements. Information regarding risk factors and other cautionary information are available in the Corporation's Annual Report on Form 10-K for 2013, which was filed with the SEC on February 7, 2014. The Corporation updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC).

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