Gloria Moncrief: An Ultra-Deep Bet on America’s Energy Future
The dawn breaks over Fort Worth, Texas, as Gloria Moncrief, at the helm of Montex Drilling Company, prepares for another pivotal journey. Her current ride, an eight-seater Cessna Citation, is a stand-in for her preferred Boeing 737, aptly named Lucky Liz, currently undergoing maintenance. The hour-long flight carries her to a secluded airfield in southern Louisiana, marking the initial leg of an expedition into the heart of North America’s largest swamp – the Atchafalaya river basin. A 45-minute drive along the levee segues into a 15-minute flat-bottomed boat ride, navigating past the basin’s vibrant ecosystem, until a monumental drilling rig emerges from the mist, its 150-foot derrick towering against the horizon, engines roaring.
Moncrief, a dynamic 44-year-old, steps onto the rig, dressed practically in jeans and knee-high ostrich-skin boots, her presence commanding amidst the mud-splattered roughnecks skillfully manipulating 40-foot sections of steel pipe with powerful hydraulic tongs. This isn’t merely a site visit; it’s a testament to an audacious, high-stakes venture. Montex Drilling is investing $300,000 daily to operate this rig, maintaining a round-the-clock crew of 60 professionals working demanding 12-hour shifts, fourteen days on, fourteen days off. Their collective mission: to complete the Highlander 2, destined to be the second-deepest natural gas well ever drilled in the United States.
Highlander 2: Pioneering Ultra-Deep Exploration
The Highlander 2 represents a monumental engineering feat, descending an astounding 30,862 feet—nearly six miles—into the earth’s crust. This immense undertaking, recently completed after 389 days of continuous drilling, aims to tap into an 800-foot-thick gross zone of sand, potentially saturated with trillions of cubic feet of natural gas. This deep exploration project carries a significant price tag; Moncrief’s firm has already committed $300 million to the Highlander 2’s drilling phase alone. The next critical stage involves securing an additional $2 billion in capital to construct essential hook-up infrastructure, develop a processing plant, and ideally, fund the drilling of five more ultra-deep wells in the same promising region. Investors keen on the cutting edge of energy development are closely watching this endeavor.
Moncrief’s determination is rooted in a rich family heritage within the oil and gas industry, characterized by both pioneering success and formidable challenges. The family’s legacy began in 1927 with her great-grandfather, William A. “Monty” Moncrief, a World War I veteran who, after more than a dozen unsuccessful wells, struck a billion-barrel oil field in East Texas in 1931. His son, William A. Jr., known as “Tex,” joined the enterprise in 1945, expanding it into one of America’s most significant family-owned energy operations, even attracting celebrity investors like Bing Crosby and Bob Hope. This expansion earned them a spot on the inaugural Forbes 400 list in 1982, a decade after their monumental discovery of the Madden Deep gas field in Wyoming in 1972.
Navigating Adversity and Sustaining Vision
The Moncrief saga hasn’t been without its share of turbulence. A significant challenge arose in 1994 when the IRS conducted a raid on Moncrief Oil, leading to Tex settling with tax authorities for $23 million in 1996. Gloria’s path to leadership also involved personal and corporate trials. After her father, Charlie, and grandfather, Tex, both passed away in 2021, she faced a challenging legal battle against her uncle, who contested her rightful place at the helm. Despite these internal struggles, Moncrief prevailed, showcasing her resolute leadership in a male-dominated industry.
Her passion for deep drilling was ignited early in her career. Joining the family business in 2009 after a period at the U.S. Department of State, she was captivated by presentations from industry titans like James Robert Moffett, then chairman of Freeport-McMoRan. Moffett’s vision for ultra-deep prospects in Louisiana, based on advanced seismic data, particularly the “Blackbeard” site previously abandoned by ExxonMobil after a $300 million investment, profoundly influenced her. Gloria gained invaluable insight from her ringside seat as Tex and Charlie invested in one of Moffett’s prospects, holding a 10% stake.
This pursuit of ultra-deep reserves led to the ill-fated Davy Jones well, which, despite reaching 29,000 feet and indicating trillions of cubic feet of gas, ultimately failed in 2012 due to extreme downhole temperatures reaching 440 degrees and intense pressures, causing mechanical failures. This setback only fueled the obsession for deep exploration. A subsequent series of ultra-deep dry holes preceded the original Highlander well. In 2014, a consortium including Moncrief’s 10% stake successfully completed the first Highlander, which swiftly commenced production at 75 million cubic feet per day, generating approximately $80 million annually in today’s market conditions.
However, the skepticism surrounding ultra-deep drilling, particularly amidst the booming shale gas revolution, was palpable. Even corporate raider Carl Icahn successfully pressured Freeport-McMoRan to divest from Moffett’s ambitious deep-drilling ventures. In 2017, as Freeport exited, Charlie Moncrief, Gloria’s father, faced a brain cancer diagnosis. During his daily radiation treatments, he meticulously imparted critical knowledge and responsibilities to Gloria, foreseeing her future role as the torchbearer of the family business. His death in 2021, coupled with the prior passing of Tex, solidified Gloria’s position, despite further legal challenges.
The challenges intensified when, in January 2023, the original Highlander well was declared a total loss due to water infiltration, halting gas production. By May, Montex acquired its partner’s stake, securing a $300 million insurance payout specifically earmarked for drilling a replacement well. This turn of events directly spurred the Highlander 2 project.
Strategic Rationale: Capitalizing on LNG Export Growth
Despite persistent questions about the economic viability of such deep and costly drilling when America boasts abundant and cheaper shale gas, Moncrief remains steadfastly bullish. Her conviction is strategically sound: the very proliferation of shale gas has propelled the construction of numerous liquefied natural gas (LNG) export terminals along the Gulf Coast. These gas-hungry facilities are geographically proximate to her Highlander assets, creating a robust and expanding market. Moncrief anticipates Highlander 2 connecting to one of the nearby gas pipelines by the close of 2027, positioning Montex to capitalize on escalating global demand for LNG.
Reflecting on her journey, Moncrief acknowledges the turbulence. While flying through a storm on her return to Fort Worth, she requested her pilots to navigate around a colossal thunderhead, a symbolic gesture mirroring her desire for smoother sailing after years of relentless challenges. Her unwavering commitment, however, signals a powerful investment narrative for those looking to the future of U.S. natural gas exports.
Investment Insights: Capitalizing on LNG Infrastructure
For investors seeking to leverage the burgeoning natural gas export market, opportunities exist in the midstream sector. Cheniere Energy, a key player in LNG liquefaction and export, operates two strategic sites in Texas and Louisiana. The company presents a compelling valuation, with an enterprise value (total debt plus market capitalization) at approximately ten times its projected $7.5 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the current year. Furthermore, Cheniere Energy’s stock trades at a reasonable 16 times its estimated $15 per share in cash flow after capital expenditures for 2026, according to analyst projections. This suggests a solid growth trajectory within a high-demand sector.
An alternative for income-focused investors is Cheniere Energy Partners. This entity specifically owns the Louisiana LNG terminal and associated pipeline infrastructure. While it requires navigating K-1 tax filings, it offers an attractive dividend yield of 5%, providing a steady income stream from established midstream assets supporting the vital U.S. LNG export corridor. Both entities offer distinct avenues for participating in the ongoing expansion of America’s global natural gas footprint, a market Gloria Moncrief’s ambitious deep-drilling efforts are poised to supply.