If you're looking to profit from high oil and gas prices, you've come to the right place. ConocoPhillips (NYSE: COP) is one of the largest U.S.-based exploration and production (E) companies.

Upstream companies like ConocoPhillips are in the business of producing and selling oil and natural gas. So higher prices as well as demand outpacing supply directly benefit ConocoPhillips.

However, E companies are also extremely vulnerable to oil and gas downturns. The sweet spot is to find an E with plenty of upside from higher prices but also a strong asset portfolio that can do well even when prices are relatively low. It's also important to find a company with a strong balance sheet and low leverage to ride out a particularly brutal downturn.

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Source Fool.com