We present the general theory of a quantum heat machine based on an N-level system (working medium) whose N-1 excited levels are degenerate, a prerequisite for steady-state interlevel coherence. Our goal is to find out the extent to which coherence in the working medium is an asset for heat machines. The performance bounds of such a machine are common to (reciprocating) cycles that consist of consecutive strokes and continuous cycles wherein the periodically driven system is constantly coupled to cold and hot heat baths. Intriguingly, we find that the machine's performance strongly depends on the relative orientations of the transition-dipole vectors in the system. Perfectly aligned (parallel) transition dipoles allow for steady-state coherence effects, but also give rise to dark states, which hinder steady-state thermalization and thus reduce the machine's performance. Similar thermodynamic properties hold for N two-level atoms conforming to the Dicke model. We conclude that level degeneracy, but not necessarily coherence, is a thermodynamic resource, equally enhancing the heat currents and the power output of the heat machine. By contrast, the efficiency remains unaltered by this degeneracy and adheres to the Carnot bound.