Why Callon Petroleum Stock Cratered Nearly 42% in August

Shares of Callon Petroleum (NYSE: CPE) plummeted 41.8% in August, according to data provided by S&P Global Market Intelligence. Several factors weighed on the oil stock, including its lackluster second-quarter results. 

Callon Petroleum reported a loss of $1.6 billion, or $3.94 per share, during the second quarter, primarily driven by the writedown of oil and gas properties. One factor causing the impairment charge -- other than this year's slump in oil prices -- was its controversial acquisition of Carrizo Oil & Gas. That deal hasn't paid dividends for the company as it saddled it with more debt right as crude prices crashed. 

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