A: Our fuel surcharge uses a baseline cost (measured in diesel cost at $.95/gallon), irrespective of when a customers contract begins or is renewed. Q: What does this charge cover? When we look at Q2 specifically, the walk forward between the 29.3% that we achieved in Q2 of '21, which I'll remind everyone, is the best quarterly performance that we've had in our history from a margin perspective, to what we delivered at 28.1% today for Q2, really, fuel is the story there in terms of that walk forward. And then, of course, if it requires a filing of some type, then we'll have justice look at it. 0000002165 00000 n I'm excited about the remainder of 2022 as we continue to deliver on our commitments to our team members, customers, communities, and shareholders. This is a completely free service and allows us to know what causes matter most to you as a customer, helping us direct charitable contributions to meaningful charities in your area.

Shop online for BNSF-branded merchandise. Because obviously, CPI of 1% for like that decade clearly doesn't feel like that's a great place for the industry and for your operations. endstream endobj 22 0 obj <>stream Right. [Operator instructions] At this time, I'd like to turn the call over to your host, Ed Egl, senior director of investor relations. And so the cost of -- the exit cost is just very low. and disposal, recycling, HAZMAT emergency response. Use Salt Lake as an example there. Learn more about our trains, how we operate them, and the variety of railcars we haul, in the informative BNSF Virtual Train Tour. Obviously, that doesn't meet the definition of a tuck-in anyway because we don't have operations overseas. Sean Eastman -- KeyBanc Capital Markets -- Analyst. The fuel and environmental charge appears on customer invoices as a one line item that contains two distinct components: a fuel surcharge and an environmental charge. Operating EBITDA margin in the quarter was 28.1%, a 50 basis point improvement from the first quarter of 2022. And I think the benefit we'll see is in terms of what we did with our labor, which is a big chunk of our operating expense line. You have to kind of consider that we had 1 less work day. Friends of BNSF is a community for people who have a connection to or affinity for BNSF.

And as I said, the exception is the last couple of quarters. Here we explore how our investments and innovations enable the reliable and efficient delivery of freight.

Our surcharges enable us to adjust for these routine fluctuations, while keeping the base rates for our services competitive. I would tell you that we're obviously -- the RIN market is what it is, and that's a part of our portfolio.

%PDF-1.6 % Terms Of Use | Notice at Collection | Privacy | 2022 BNSF Railway Company. A: The Regulatory Cost Recovery Charge is a standard charge assessed by sbc waste services intended to cover a portion of our enterprise-wide costs for host community fees and disposal taxes paid by sbc waste services. WebFuel Surcharge | Rumpke Fuel Surcharge Everything costs more these days, theres no way around it. Your line is open. OK. Great. I mean, is it really just trucks we're talking about here? at Least It appears that we currently do not offer service in your area, but please check back at a later date, as this may change. By contract or by the discretion of our company, some customers pay a nonstandard regulatory cost recovery charge and some are exempt from such a charge. As you look at the book of business today, what's your best sense for how pricing might look in '23? To avoid late fees we suggest customers sign up for electronic billing and automated payments by logging in to our My Account portal. That 12-month lag that you talked about is really contractual with these big municipalities. leader in solid waste management, liquid waste management, and soil remediation services. And you're asking kind of more specifically around commercial and industrial pricing. BNSF's secure customer website enables shipment tracking, bill payment, and more. And that's looking at the operating expense line, so we would also -- for the EBITDA margin, and I think it's important in thinking about EBITDA margin in two pieces. 0000008293 00000 n I guess, not only does it bring in more synergies, Jim, it also makes it harder for those mom-and-pops to compete with you and perhaps drive more to you, given that they can't match your technological investment. Q: Why is there a fuel charge when the cost of fuel is less than what it was when my contract began or was renewed? The index is updated Monday evenings. And yes, there are some ancillary businesses that might be interesting to us. Depending on your location, some invoices may combine the Fuel Surcharge and Environmental Surcharge into one line item, which is designated Oil/Environmental Price Adjustment. For these invoices, the Oil component of the Oil/Environmental Price Adjustment refers to the Fuel Surcharge discussed above, and the Environmental component is synonymous with the Environmental Surcharge discussed above. The percentage may be changed periodically if there is a business determination that warrants an increase or decrease in the fee charged.

Find the right person to help you with your retirement benefit questions, including health insurance, the Employee Assistance Program and payroll. We know the ins and outs of what it takes to serve the waste & recycling needs of customers large and small.

Are there other things we can do with plastics that come into the landfill? And as I said, we're doing everything we can with price and doing a good job with it, but to cover our cost. Because of the variability of fuel prices and the complicated calculations involved, there may be a contribution to our operating margin in the fuel surcharge. So one is how did we perform relative to the expectations that we laid out at the beginning of the year. Waste Management Fuel Surcharge, Environmental Charge, Regulatory Cost Recovery Charge and Waste Water Management Charge are applied on all loads. Our SBC company incur costs of dollars in host community fees and waste disposal taxes every year.

That the conversations have changed a little bit? I'm extremely proud of having the entire WM team work together to provide safe and reliable service to our customers. Our standard fuel surcharge calculation stems directly from the national average price of diesel fuel, which the Energy Information Administration of the U.S. Department of Energy (EIA/DOE) reports weekly in their Retail On-Highway Diesel Prices Index. Look, I mean, it's -- I don't think it's against the rules to say that trying to reduce our cost structure is something that's very important to us. Thank you. Minimum of 3 months service required. For example, if the diesel fuel price per gallon was $2.75 the last week of the preceding month, then the fuel component of the charge would be 11.07 percent of your total invoice amount, excluding taxes. A: We use an historical baseline fuel rate that was selected when we first implemented a fuel charge in 2000. Can we help everybody appreciate the significance of that as well? And that obviously is impacted as you're having to keep older trucks in the fleet. Look up UMLER specifications for up to 300 railcars. Welcome to the BNSF newsroom. H=n0wBC{0!~N@\GNIOc*}TH[V!=&n Super. to locate, construct, operate and/or expand our waste and/or recycling facilities in the community. As Jim mentioned, I don't think any of us think this labor shortage or the labor wage pressure is going to abate anytime soon. Railroading is a big world filled with impressive and interesting people.

If you look at what our core price and yield results have tracked at the last six, eight, maybe even 10 quarters, it certainly outpaced up in the last couple of quarters what CPI has been.

Maybe you'd revisit that guidance next quarter. I mean, last year, we didn't get the trucks that we ordered.

That one actually was closer to 50% reduction in labor. Check this site for information about benefits and retirement plans.

In these stories you'll meet some of the thousands of diverse, talented, and dedicated employees who do their part to keep freight moving for our customers. Click/tap Submit to send your request. But you're now telling us it's less than positive 100, 140 in the second half.

WebWM Historical Fuel/Environmental Charge Percentages Week of DOE Average WM Collection Surcharge % WM Disposal Surcharge % Environmental % 28-Mar-23 $ 4.13 Once activated, the button will disappear and become Pay My Bill, so if you don't see the green "Activate E-Billing" button and instead see Pay My Bill, you are already enrolled in E-billing and no action is required. So why go through that hamster wheel every single day? Rumpkes fuel surcharge is well below the fees of other major competitors in the industry. And we're -- most of our revenue is kind of more of a lagging indicator. The RIN recycling upside of $35 million to $45 million, I'm assuming that's mostly all weighted in the first half because the RIN's coming down, recycling's come down sequentially. And even after we saw Q1 unfold, we revised those expectations, and they're still below what we had expected at that point in time. I want to take a moment to discuss our capital allocation priorities, particularly related to M&A. It's designed to be neutral from an EBITDA standpoint, but it does hurt us on the margin line. I know most companies are not seeing a downturn either yet, but -- just the reason I ask that question is the sector is pretty different from '09, when volumes fell 10% and it took a lot longer to recover. Our resilient business model is underpinned by our diverse customer base and essential nature -- the essential nature of our service and the annuity-like characteristics of about 75% of our revenue. And just this dynamic around comping the heavy wage increases. When prices drop and money is saved, the fuel surcharge drops as well and those savings are passed on to you. Thank you. Facility Update notifications inform BNSF customers of changes related to specific facilities. The table also references the EIA/DOE value for each week. Refer to the Intermodal Reference for details about setup, planning, shipping and managing. And so far this year, we have not gotten to the number that we expected. I mean, the good news for us is that we are pretty -- I mentioned 75% of our business is pretty resilient to a downturn, so we perform well in any environment. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. I know the business is pretty resilient. During the call, you will hear forward-looking statements which are based on current expectations, projections or opinions about future periods. We don't really -- we don't capture fuel in our core price or our yield numbers. You guys threw out quite a bit in the prepared remarks, but I just want to make sure I have it. If you are a CN eBusiness user you can get your rail miles and route by clicking here. Q: How can I access the Department of Energy Weekly Retail On-Highway Diesel Prices Index? The fuel surcharge may vary by customer and location and is intended to address the overall direct and indirect cost of energy incurred on a company-wide basis in providing environmental services to all of GFLs customers. Your line is open. The charge allows us to perform these operations in a safe and environmentally responsible fashion, while also allowing us to attain a reasonable operating margin. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. So it was a combination of direct fuel and indirect. BNSF is forever proud of its heritage and history, and we combine that with a never-ending drive to explore new technologies and approaches where appropriate to enhance safety and efficiency.

Cash flow from operations growth was slightly muted relative to operating EBITDA growth due to higher cash taxes, which will continue throughout the year, and working capital pressure that we expect to moderate over the remainder of the year.

Once you've navigated to the specific account you need an invoice for, select the Billing & Payments tab in the second-level navigation bar. But we think there's some really good companies out there that are not asking for ridiculous prices, purchase prices, and those are attractive to us. Yes. As we move into the second half of the year, we expect inflationary cost pressures to ease on a year-over-year basis given the proactive steps we took to raise frontline wages in the second half of 2021.

I mean we kind of consider -- we consider recycling to be traditional solid waste, but it's a bit of both. Our core price is recovering our cost of inflation in each line of business, except residential, where the impacts of higher labor costs are most pronounced. Get the answers to the questions most commonly asked about BNSF. One moment. endstream endobj 21 0 obj <>stream Get in touch with us using the Media Contacts list on the left. A: Here is the link to the EIA/DOE. So just curious, your view on what is an addressable market for Waste Management outside of solid or even outside of hazardous waste. I mean, there's a ton of speculation out there about what this -- when does the recession hit, how deep is the recession, how long is it? TWIN CITIES 612-884-8000 This cookie is set by GDPR Cookie Consent plugin. And I would tell you, the other thing that's happening is when we started down this past few years ago, recycling and residential are two good examples. I would tell you that pricing, really across the board, I can't find a weak spot in terms of how we're performing on the price front. 6 YARD SLANT TOP COMMINGLED RECYCLING BOX, 8 YARD SLANT TOP COMMINGLED RECYCLING BOX, SPECIALIZED SERVICES & INDUSTRIAL CLEANING, gflenv.com/our-services/for-home/residential-solid-waste/organics-compost/, placement guidelines for residential waste, placement guidelines for recycling collection, Acceptable Materials for Recycling Collection page, GFLs Brittany Loraas recognized in The Peaks Emerging Leaders for 2023, GFL works with Cheam First Nation to care for their traditional lands and water, Full Circle Project and International Day of Education, Fourth grade class honors GFL hometown heroes. So a couple of things. We've done this many times, moving from rear-load to ASL, and the pickup in efficiency is about 15%. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Create Calculation Sheet: Add Fuel surcharge condition type in Calculation sheet; Fuel surcharge condition will refer 2 rate tables. The Fuel Surcharge allows our company to recover the cost of diesel, and products that SBC WASTE on an Company -wide basis uses in its overall business, above a baseline cost. I mean, landfill pricing has been a focused area for probably three or four years for us. 0000006573 00000 n Liquid Environmental Solutions surcharge tables show what the energy surcharge, as a percentage of your monthly or other periodic invoice charges, before taxes, is based upon the last reported EIA/DOE national diesel price index prior to your invoice date. We consider our business to be very price-inelastic. Second half volumes are expected to remain strong and for the full year, we expect collection and disposal volume growth of about 2.5%. Everything costs more these days, theres no way around it. The amount or percentage of the charge is not specifically linked to the direct or indirect costs to service-specific customer accounts. Just how are you thinking about pricing, commercial, industrial landfill on -- as the year goes on? So our special waste was very strong for Q1. Your line is open. And that's OK. That makes sense. The Environmental Charge is not specifically tied to the environmental compliance or other costs to service each individual customer account. 0QIRLA`i{UC#mjRoWH$b4Gs!l;S7S#(Z`[),. We think that's pretty comfortable. The Form 8-K, the press release, and the schedules of the press release include important information. In the renewable energy business, better pricing for renewable natural gas, electricity, and environmental credits is driving our full year outlook for this business higher than our original guidance by $35 million to $45 million. Now they're able to separate it. SBC Waste Solutions uses the surcharges to try to recover the all company-wide costs for diesel, natural gas, and other hydrocarbon-based fuels and products used by SBC Waste Solutions above the $.95/gallon diesel cost baseline, only from those customers subject to a fuel surcharge, this this exclude anyone who is exempt from the surcharge, as well as non-paying customers. As Jim discussed, we are well-positioned to allocate free cash flow among all our capital allocation priorities. Just wanted to get a little bit of color as well on the M&A pipeline, and good to see you coming back in greater force to the market. I'll cover our updated guidance in a moment, but I want to give a little more color around our second quarter and year-to-date financials first.
A: The Regulatory Cost Recovery Charge is a standard charge we assess based on overall regulatory costs, which is meant to cover a portion of SBC Waste Solutionss overall enterprise-wide costs for host community fees and disposal taxes that we pay across all of our service areas. The SBC Waste Collection Fuel Surcharge Table or the SBC Waste Disposal Fuel Surcharge Table details what the fuel surcharge as a percentage of a customers monthly charge (or other incremental invoice charges) before taxes would be based on the most recently reported EIA/DOE national diesel price that came before the customers invoice date.

$25.00 for services and a $3.00 fuel surcharge, an environmental charge of $4.48 would be added (16% of $28.00). Browse to find what cities are included in the various industrial products rate groups. Has there been any push on your end to maybe shrink that lag?

So the indirect will show up in lines like the subcontractor category. And then all of a sudden, we kind of finished digesting ADS, and then we get this big headwind from fuel. But on RNG, look, I think our expectation here is that -- we built in $2.80, Jerry, for the back half of the year. I think we've kind of talked about it compared to banks, for example, where their spreads are better at lower rates. So --. Serving Carrier Reciprocal Switch Inquiry. Tying our standard Fuel Surcharge to this index ensures customers are assessed a fuel surcharge that is currently adjusted and easy to calculate. No, that's right.



That's right. We strive to consistently lower our overall impact on the environment. The cookie is used to store the user consent for the cookies in the category "Performance". This charge is not specifically tied to such costs to service your account, but instead helps us cover costs for host community fees, waste disposal taxes and similar charges to service all company customers and to achieve an acceptable operating margin. Cost basis and return based on previous market day close. Your line is open. Thank you. You also have the option to opt-out of these cookies. Hr0 `0HAtl )MSEv}za}/K#AYBF0rWo^j3DkPJ&mEz!%#>m And we've also -- in terms of -- we don't want to necessarily shed the volume, but we want to be profitable. Operating EBITDA increased more than $100 million in the second quarter, driven by an increase in the operating EBITDA of our collection and disposal business of $107 million. Our teams continue to be focused on disciplined pricing in the second half of the year, and we now expect 2022 core price of more than 7% and collection and disposal yield approaching 6%. Q: Did you increase this charge to help pay for the sustainability goals your company announced in October 2007?
We believe employing a fuel surcharge that uses a common baseline rate for all our customers is the best approach, as it results in a uniform fuel surcharge that can be calculated by customers, Regulatory Cost Recovery Charge If you are unsure of where your closest landfill/ transfer station is, you can visit gflenv.com/drop-off-location to find the drop-off location nearest to you. Before we get started, please note that we have filed a Form 8-K this morning that includes the earnings press release and is available on our website at www.wm.com. We expect similar levels, maybe a moderate decrease in the second half of the year on a quarter-by-quarter basis. To activate AutoPay, you must first enroll in E-billing.