AASHTO SCORT

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AASHTO SCORT Presentation September 21, 2009
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Stillwater Central Railroad Map
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Central Region Map
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Carload Growth
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Oklahoma City Transload Facility
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How we grew

• 1989 Osage Railroad begins operation in Tulsa
  on purchase from the Union Pacific
• 1990 South Kansas and Oklahoma Railroad created
  by purchase from Santa Fe connecting SEK Railroad
  with Tulsa
• 1998 -- SLWC enters into agreement with State of
  Oklahoma on Aggie Sub Division and Sooner Sub
• No traffic is moving on Sooner Sub Division
• 2004 SLWC purchases railroad from OKC to Long,
  OK
• 2005 SKO/SLWC begins joint line move of cement
  from Chanute, KS to OKC
• 2006 SLWC leases BNSF terminal operations in
  OKC from BNSF on Frisco Line

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How we grew

• 1989 Osage Railroad begins operation in Tulsa
  on purchase from the Union Pacific
• 1990 South Kansas and Oklahoma Railroad created
  by purchase from Santa Fe connecting SEK Railroad
  with Tulsa
• 1998 -- SLWC enters into agreement with State of
  Oklahoma on Aggie Sub Division and Sooner Sub
• No traffic is moving on Sooner Sub Division
• 2004 SLWC purchases railroad from OKC to Long,
  OK
• 2005 SKO/SLWC begins joint line move of cement
  from Chanute, KS to OKC
• 2006 SLWC leases BNSF terminal operations in
  OKC from BNSF on Frisco Line

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Track Projects -- 3 mm in 2009

• The Cowboy Sub The Cowboy Sub program is to
  maintain the main
• line for the existing customers. Grain and feed
  are the primary commodities
• railed on the Cowboy Sub.
• Miles 8.5
• Ties 2500
• Rail
• Cost 264,991
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• Sooner Sub The Sooner Sub Rehabilitation will
  allow for increased annual tonnage per mile.
  This will allow and increase in speed reducing
  travel time on customer shipments. Improvements
  will also reduce risk assessment allow for
  improved safety.  
• Miles 95
• Ties 11,165 Bridge cross ties
• Rail 29,057 between MP 438.8 MP 532
• Cost 2.4 million
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• Lawton Sub The Lawton Sub needs ties rail and
  surfacing for about 26 miles. Improvements will
  increase tonnage per mile and reduce delays for
  customer shipments .  
• Miles 26
• Ties 2000
• Rail 9,000
• Cost 398,848

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Stillwater Central Customers

• All Trans Port Services
• Anchor Drilling Fluids
• Anheuser-Busch, Inc.
• API Enterprise
• Arrowhead Lumber Sales Inc
• Ash Grove Cement Co
• Baker Hughes Drilling Fluids
• Capitol Steel Iron
• Carbo Ceramics
• Citgo Petroleum Corporation
• Comanche Home Center
• Crude Marketing
• D M Distribution Services, Inc.
• Fox Building Supply, Inc.
• Garrett Tubular Services, LLC.
• GATX Corporation
• Goodyear Tire Rubber Co Inc.
• Griswold Energy
• Harrison Gypsum

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Questions
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Passenger Service

• Currently Oklahoma Heartland Flyer Service
  connects Dallas to Oklahoma City.
• Strong desire to connect Tulsa to Oklahoma City
  to connect to national rail network
• Two opportunities
• Build new line between Oklahoma City and Tulsa on
  the Turnpike, truly high speed
• Build all at one time
• Rebuild line on Sooner Sub, reach speeds of 79
  mph for a reduced cost
• Incremental improvements
• SLWC is willing to be part of any solution

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The Future

• Watco wants to continue to work with Customers in
  Oklahoma to grow the business and provide
  transportation solutions
• We are very proud of the growth on the Stillwater
  Central Railroad
• Sooner Sub is a true public private partnership
• State preserved the asset
• Watco has grown the traffic from 0 cars in 1998
  to more than 30,000 projected in 2010
• To do this we must continue to stay true to our
  Foundation Principles

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Watco Companies A Customer First Company

• Improve Customer Satisfaction
• Right Car
• Right Time
• In the Right Condition
• At the Right Price
• Improve Profitability
• Revenue Growth Rate
• EBITDA Growth
• Return on Assets gt WACC
• Free Cash Flows
• Economic Value Add (EVA)
• Do Both Over the Long-Term
• Building Relationships
• Customers
• Employees
• Communities
• Vendors
• Investors

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176 - Reps
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(No Transcript)
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42 Senators