What drove CNQ's earnings growth in 2023?

Canadian Natural Resources (CNQ) experienced a decline in net income in 2023 compared to the previous year, with a growth rate of -0.23%. This decline was primarily driven by the decrease in oil and gas prices, which significantly impacted the company's earnings.

1. **Oil and Gas Price Drop**: The decline in oil and gas prices was a major factor in CNQ's earnings decline. Despite this, the company's performance exceeded expectations, leading to a positive response in the stock market.
2. **Market Conditions**: The oil market faced volatile conditions in 2023, with prices hovering around $80 per barrel. Over the past 12 months, WTI traded between $63 and $95 per barrel, while Brent moved between $70 and $95 per barrel. These fluctuations had a direct impact on CNQ's earnings.
3. **Strategic Responses**: Despite the challenging market conditions, CNQ has been actively managing its operations and capital allocation. The company's commitment to returning value to shareholders through dividend hikes has been a key aspect of its strategy, which has helped to mitigate some of the negative impacts of the earnings decline.

In conclusion, CNQ's earnings decline in 2023 was primarily driven by the drop in oil and gas prices, coupled with broader market fluctuations. Despite these challenges, the company's strategic responses, including its commitment to shareholder returns, have helped to maintain a positive outlook for the company.