The reckoning is coming to the oil patch.

Occidental Petroleum (OXY), the shale oil giant that piled on debt to acquire Anadarko Petroleum last year, said Tuesday it will slash its dividend by 86%.

Occidental, which is backed by billionaires Warren Buffett and Carl Icahn, is also cutting its 2020 capital spending to a range of $3.5 billion to $3.7 billion. That’s well below its earlier plan of up to $5.4 billion.

Echoing comments made earlier in the day by rival Chevron, Occidental said it will implement cost-cutting moves.

Taken together, Occidental said the moves will drop its cash flow breakeven level to the low $30s.

The cuts come after US oil prices crashed 26% to $31.13 a barrel on Monday. It was the worst day for oil since 1991.

«Due to the sharp decline in global commodity prices, we are taking actions that will strengthen our balance sheet and continue to reduce debt,” Occidental CEO Vicki Hollub said in the statement.

Icahn repeatedly warned last year that Occidental’s takeover of Anadarko would backfire, forcing the company to cut its dividend if oil prices tumbled. That warning has now borne out.