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UPDATE 1-Occidental Petroleum production will miss post-Anadarko merger target in 2020

Jennifer Hiller

target in 2020@ (New throughout, adds details, background and comments)

Nov 5 (Reuters) - Occidental Petroleum Corp on Tuesday said sharp reductions in capital spending next year will result in oil and gas production growth of just 2 percent, missing the target for 5% growth of the combined business with Anadarko Petroleum.

Occidental plans to slash spending by 40% and cut back on production goals in order to meet dividend and debt payments, it disclosed Monday when it released third quarter financial results.

It plans 2020 spending of about $5.4 billion and a 2021 budget of $6.6 billion, Chief Executive Officer Vicki Hollub said Tuesday on a call with analysts. The company expects 5% annual production growth in 2021.

Occidental faced investor opposition to the Anadarko deal - which did not go to a shareholder vote for approval - and is battling activist investor Carl Icahn.

Icahn wants to replace board members, have the company accelerate asset sales, and in court is seeking documents related to the deal. A letter to a judge this week said he wants to know, "whether the actions of the directors and management were just serious mistakes or whether they represented knowing intentional breaches of fiduciary duty similar to those seen with Enron, Worldcomm and other failed companies."

Occidental shares were trading at $42.11 on Tuesday, down 4.8%. (Reporting by Jennifer Hiller; Editing by David Gregorio)