On June 20, 2014, about 1600 central daylight time, a float-equipped Cessna 172, N758HP, sustained substantial damage shortly after take off from Pickerel Lake, near St. Cloud, Minnesota. The private pilot and the two passengers were not injured. The airplane was registered to and operated by the pilot as a 14 Code of Federal Regulations Part 91 personal flight. Visual meteorological conditions prevailed and no flight plan was filed for the local flight. The pilot stated that he conducted a pre-flight inspection of the airplane and performed an engine run-up prior to takeoff and everything was normal. The pilot then departed the lake on a north westerly heading. As the airplane began to climb, the engine began to lose power. The airplane then stalled and the left wing struck the water. The airplane flipped over and sank inverted into the lake. All three occupants were able to exit the airplane on their own. The airplane sustained substantial damage to both wings and both floats were crushed. The propeller was also damaged. Postaccident examination of the engine revealed that when the engine was turned via manual rotation of the propeller, all but the No. 3 cylinder produced compression. Both the intake and exhaust valves and also the rocker arm moved as well. No further examination of the engine was conducted and the reason as to why the cylinder did not produce compression was not determined. Weather reported at St. Cloud Regional Airport (STC), St. Cloud, Minnesota, about 5 miles south of the accident, at 1553, was wind from 150 degrees at 7 knots, visibility 10 miles, broken clouds at 8,500 feet, temperature 28 degrees C, dew point 17 degrees C, and an altimeter setting of 29.88 inches of Hg.