Energy stocks were higher Friday afternoon, with the NYSE Energy Sector Index up 0.5% and the Energy Select Sector SPDR Fund (XLE) rising 0.6%.

The Philadelphia Oil Service Sector index was adding 0.4%, and the Dow Jones US Utilities index was shedding 1.1%.

In sector news, the US plans to sanction 180 tankers, dozens of oil traders, two oil companies, and some oil executives in Russia, Reuters reported, citing a document circulating among traders in Asia and Europe whose veracity the news agency "could not verify."

Front-month West Texas Intermediate crude oil jumped 3.2% to $76.28 a barrel, and the global benchmark Brent crude contract spiked 3.2% to $79.41 a barrel. Henry Hub natural gas futures surged 6.8% to $3.95 per 1 million BTU.

In corporate news, Constellation Energy (CEG) agreed to buy privately held energy company Calpine in a cash-and-stock deal for a net price of $26.6 billion, including debt. Constellation shares surged more than 26%.

Edison International's (EIX) Southern California Edison unit said that no fire agencies have suggested that its equipment was involved in the Eaton Fire in Los Angeles. Edison International shares were down 5.1%.

Kinder Morgan (KMI) temporarily shut down its SFPP West and CALNEV fuel pipelines in Los Angeles on Jan. 8 due to power outages caused by the wildfires, Reuters reported. Kinder Morgan shares were 0.1% higher.